I just bought a new compressor this week and it came with an air dryer. I thought awesome!...freebee! Well, it doesn't work
Anyways, I blew off a few parts to dry them after degreasing and using Columbia Coatings Iron Phosphate, when I saw water vapor coming out of the line. It was enough water to actually wet the parts a bit. I drained the tank and let it fill back up...still had the same amount of moisture.
I tried coating said parts and the powder wouldn't stick AT ALL

Would the moisture in the air cause this?