For air brushing or just spraying paint/finish, your best air supply should be dry, and cool. My technique is to locate the regulator and filter as far from the tank as possible. I've used many different types of filter/regulators including the ones that take a toilet paper roll.
For the money, a combination filter/regulator/gauge like this, works very well. Harbor Freight has one similar, for around $30 or less, but I couldn't find it on their site.
Locating the filter/regulator far from the tank performs a few functions. The filter will trap more moisture and contaminants than one on the tank. The reason for this is that at the tank there is blow by from the air pressure. Filters there, IMO, are sorta useless.
If your compressor is in a small space, your option would be to pipe from the tank as high as possible, turn a corner and pipe as far as possible, and then return down with a QD fitting. It's at that point, where you attach the filter/regulator. In the crude drawing below, you can see a supposed layout. The piping comes out and there should be a drain petcock below. The pipe rises and then returns down, with another drain. The filter/regulator is above that drain. A quick disconnect should be there, or a multi-outlet manifold can be added with more than one regulator. Some air tools, like an airbrush or a spray gun may only need 50 PSI or less. Other tools like a brad nailer may need 90 PSI.
Having some travel with the piping allows the air to cool somewhat. Having the air to travel up, allows moisture to be separated.