Compressor Water Seperator?

Was doing some work down in the barn yesterday. Needed to do some grinding so got out the air grinder. Thing kept stopping and blowing moisture out the holes that are on the front towards the grinding wheel. Realized there's no water seperator at all on the system. Just a basic 26 gallon Craftsman compressor with no hard lines attached yet, just a flexible hose. I have no experience with air tools, so what do I need to keep them operating freely?

I dunno, I suppose, I guess so, I have no pneumatic equipment experience other than inserting the tool into the air line and using it. Just noticed that there seemed to be alot of moisture coming out so maybe the tank just needs its petcock relieved of its backlog, like you!