I would suggest a better water trap, if your still getting water due to your local conditions, spend the extra bucks and buy a decent water trap, the good ones do work very, very well, but don't expect to buy it for $10 at your local DIY store. Get yourself a catalouge for one of the local pnumatic companies and get one from them.
Silica gel, will work, but not for any length of time, plus it was never designed to absorb moisture while under pressure, so you cant say what else is going on inside that bowl?