The present disclosure provides a compressor system operable for compressing a working fluid such as air. A conditioner is positioned upstream of the compressor to reduce the humidity and may in certain forms control a temperature of the working fluid entering the compressor. An aftercooler and an oil cooler is positioned downstream of the compressor. A first heat exchange system may direct water from a source through the conditioner to the aftercooler and oil cooler. An oil heat exchange circuit directs oil from the compressor to the oil cooler and then to a regenerator prior to reentry into the compressor. A control system is operable for controlling portions of compressor system to provide inlet air to the compressor at a desired temperature and humidity.