My compressor has, maybe, a little much in the filter dept. I have used it to paint a car so I figured this was adequate. There is a 10 micron filter on the left and a 5 micron after that before it hits the regulator on the right.
You have to remember, as compressed air cools, water condenses. Hence the deposits in the regulator.
The filters do a good job of removing most of the water, so I just periodically drain the water from the bottom of the filter.