Its best to dry the air as far up stream as possible. That way most of your
system is dealing with dry air and not just the last leg. You can get water
separators that attach to the hose outlet but I personally think getting it
dry as near to the compressor outlet as possible is "best".

Put the cooler as close to the compressor outlet as possible followed by the
water separators. Drain frequently. If you are inside and can run a
dehumidifier that can also make a big difference if your conditions are
within the specs for the de-humidifier.