Abstract: The present invention is directed to a fuel filter dehydrator apparatus for a fuel system which coalesces and retains residual water within the fuel filter. The device comprises a plurality of fuel filter dehydrator elements and a container for housing the filter elements. The container defines a fuel inlet and a fuel outlet for directing fuel through the filter dehydrator elements. Each of the filter dehydrator elements comprises a rigid, porous tube having a water retaining cellulose fiber sheet and water coalescing fiberglass layer wrapped therearound. The fiberglass coalesces water droplets in the fuel passing through the element and then releases the coalesced water to the cellulose fiber sheet. As the cellulose sheet becomes water saturated, its fluid permeability sharply decreases, automatically shutting off fuel flow therethrough. Residence of water in the fiberglass layer substantially adds to the water retaining capacity of each fuel filter dehydrator element.