Abstract: An air dehumidifying and conditioning system (20) draws incoming air (32) through a fan (40) and uses heat from the fan (40) and fan motor (48) to heat air discharged from the fan. The system then divides air discharged from the fan into a supply stream (50) and a scavenge stream (52). The supply stream is passed through a pre-cooler (60A) and an air cooler (60) for cooling and dehumidification. If necessary, the scavenge stream is heated with a pre-heater (62A) and a supplemental heater (62). The dehumidified air of the supply stream (50) is then heated by passing through a heat exchanger (80), with the heating by the heat exchanger being accomplished using the scavenge stream (52). Should no heating, cooling, or dehumidifying be required, a bypass stream (54) formed from the scavenge stream (52) is transmitted to the conditioned space.