Air Compressor Setup?

Where will you put a water trap at ? I do a down drop then put a water trap in and then back up shaped like a U some where near the middle A water trap before the regulator
1/2 schedule 40 has PVC has been flawless for me.

I was going to put a water trap/filter immediately after the compressor. Now that you mention the 'U' shape, I've seen that before. I just looked at my diagram and realized that I labeled it as a regulator. I was doing a little reading and correct me if I'm wrong, but I prolly won't need to use a regulator.

I plan on using the compressor the most for an impact, ratchet, air hammer/chisel and maybe a cutoff wheel. Possibly down the road, I'll use a sander and sprayer, but I'm sure that will be limited and a ways down the road.