Coalescing is the separation of liquid aerosols and droplets from a gas. Using a coalescing filter element in a housing with three ports, the gas passes the filter element from the inside out. The inner layer is a high-efficiency coalescing layer and the outer layer is a coarser drainage layer. The fine liquid aerosols and droplets are captured by the fibers in the inner layer where they run together along the fibers to form larger drops. These drops are forced to the outside of the filter element and drain to the bottom of the housing by gravity. The condensate drain at the bottom of the filter element allows for easy removal of the captured liquid.