A system and method for removing water from oil comprises: a housing, an oil inlet tube fluidly connecting the oil supply and an oil inlet of the housing, an inlet pump configured to pump a flow of oil from the oil supply to the oil inlet at a first pumping flow rate, an oil outlet tube fluidly connecting an oil outlet of the housing and the oil supply, an outlet pump adapted to pump a flow of oil from the oil outlet to the oil supply at a second pumping flow rate, an air inlet tube providing a gas connection between a air supply unit and an air inlet of the housing, and an air outlet tube providing a gas connection between an air outlet of the housing and the air supply unit, wherein the second pumping flow rate is greater than the first pumping flow rate