A dehumidification system for a heat pump, a method of operating a heat pump system, and a method of operating a refrigeration system are provided. The method of operating a heat pump system includes circulating refrigerant in a refrigerant circuit having a compressor (12), selectively communicating refrigerant from the compressor to an indoor heat exchanger (18) during a heating mode or to an outdoor heat exchanger (16) during a cooling mode or a reheat mode, selectively communicating refrigerant to a reheat heat exchanger during the reheat mode, and regulating a refrigerant volume in the reheat heat exchanger.