A system and method is provided for automatically priming a fuel system by bleeding/purging air or vapor therefrom. The system includes a bleed valve configured to automatically move between three positions in response to the pressure of the fuel in the system. When fuel pressure is in a first pressure range, the bleed valve automatically moves to a first-closed position for preventing fuel from draining to the fuel tank and thereby drawing air into the fuel system. When the fuel pressure moves to a second, higher pressure range, the bleed valve automatically moves to an open position for bleeding air out of the fuel system and into the tank, thereby priming the fuel system. When the fuel pressure moves to a third, still higher pressure range, the bleed valve automatically moves to a second-closed position so as to not interfere with the regulation of the pressure regulating valve.