Abstract: A pair of heat exchangers of generally cylindrical shape are coaxially coupled to the opposite ends of a cylindrical air-water separator. Each heat exchanger has a stack of heat transfer disks brazed together to define two alternating sets of intercommunicating flow paths. The first set of flow paths of the first heat exchanger receives high-temperature, high-humidity air under pressure, which is precooled by low-temperature, low-humidity air flowing to the second set of flow paths from the air-water separator. The precooled high-humidity air is directed through an internal passageway in the separator into the second heat exchanger, in which the air is cooled by heat exchange with a coolant. The cooled high-humidity air is then directed into the separator for reduction of the moisture. The low-temperature, low-humidity air is then afterheated by precooling the incoming high-temperature, high-humidity air in the first heat exchanger, for subsequent delivery to a load.