Abstract: An air conditioning apparatus includes a subcooling heat exchanger for subcooling refrigerant being delivered to an evaporator and for reheating air flow downstream from the evaporator; and a hot vapor heat exchanger, connectable in fluid communication with a refrigerant outlet of a compressor and positioned in the air flow downstream from the evaporator, for further reheating the air flow from the evaporator to further lower the relative humidity of the air flow. The air conditioning apparatus also preferably includes a hot vapor heat exchanger controller for selectively connecting the hot vapor heat exchanger in fluid communication with the refrigerant outlet of the compressor responsive to a sensed temperature.