Abstract: A refrigerant system has a refrigerant circuit comprising a compressor for compressing a refrigerant and delivering it downstream to a condenser. A bypass line is provided around the condenser for selectively allowing at least a portion of refrigerant to bypass the condenser. Valves are provided on a line leading to the condenser and on the bypass line to individually control the flow of refrigerant. An expansion device is located downstream of the condenser, and an evaporator is located downstream of the expansion device. A reheat cycle is incorporated into the system. The reheat cycle includes a valve for selectively delivering at least a portion of refrigerant through a reheat heat exchanger, which is positioned in the path of air downstream of the evaporator. A control is provided for the system to achieve a desired level of dehumidification and temperature control to air being delivered into the environment to be conditioned.