An air conditioning system for dehumidifying and cooling air, and circulating said air through an interior space defined by a structure, the system comprising: a housing defining a chamber, the housing further defining an outside air inlet for receiving outside air into said chamber, a return air inlet for receiving return air from said interior space into said chamber, and an outlet for delivering air from the chamber to said interior space; a cooling and dehumidifying coil located in the chamber; said housing defining a first airflow path therein communicating between said outside air inlet over said coil and to said outlet for delivering outside air from said outside air inlet over said coil to said interior space, said system further defining a second airflow path between said return air inlet over said coil and to said outlet for delivering return air from said interior space over said coil to said interior space; said housing further defining a third airflow path between said return air inlet and said outlet for delivering return air through said chamber to said interior space without passing over said coil; a sensor located in said interior space for measuring a humidity level in said interior space; an outside air damper sequentially moveable between an open position permitting outside air to flow through said first airflow path and a closed position where the outside air inlet is closed; a return air damper sequentially moveable between an open position permitting return air to flow through said second airflow path, and a closed position where the return air is prevented from flowing through said second airflow path and over said coil; a bypass air damper sequentially moveable between a closed position permitting return air to flow to said second airflow path, and an open position where the return air flows through the third airflow path and toward said return air damper; and a controller configured to independently control the opening and closing of the outside air damper, the return air damper and the bypass air damper through intermediate positions between the open and closed positions in response to data received from said sensor, the controller being further configured to reposition the bypass air damper into an intermediate position closer to the open position in response to a dew point measurement measuring greater than a predetermined dew point range to increase the amount of return air traveling through the third airflow path bypassing the cooling coil, and the controller being further configured to reposition the return air damper into an intermediate position closer to the closed position in response to a dew point measurement measuring greater than a predetermined dew point range to decrease the amount of return air traveling through the second airflow path across the cooling coil. a housing defining a chamber, the housing further defining an outside air inlet for receiving outside air into said chamber, a return air inlet for receiving return air from said interior space into said chamber, and an outlet for delivering air from the chamber to said interior space; a cooling and dehumidifying coil located in the chamber; said housing defining a first airflow path therein communicating between said outside air inlet over said coil and to said outlet for delivering outside air from said outside air inlet over said coil to said interior space, said system further defining a second airflow path between said return air inlet over said coil and to said outlet for delivering return air from said interior space over said coil to said interior space; said housing further defining a third airflow path between said return air inlet and said outlet for delivering return air through said chamber to said interior space without passing over said coil; a sensor located in said interior space for measuring a humidity level in said interior space; an outside air damper sequentially moveable between an open position permitting outside air to flow through said first airflow path and a closed position where the outside air inlet is closed; a return air damper sequentially moveable between an open position permitting return air to flow through said second airflow path, and a closed position where the return air is prevented from flowing through said second airflow path and over said coil; a bypass air damper sequentially moveable between a closed position permitting return air to flow to said second airflow path, and an open position where the return air flows through the third airflow path and toward said return air damper; and a controller configured to independently control the opening and closing of the outside air damper, the return air damper and the bypass air damper through intermediate positions between the open and closed positions in response to data received from said sensor, the controller being further configured to reposition the bypass air damper into an intermediate position closer to the open position in response to a dew point measurement measuring greater than a predetermined dew point range to increase the amount of return air traveling through the third airflow path bypassing the cooling coil, and the controller being further configured to reposition the return air damper into an intermediate position closer to the closed position in response to a dew point measurement measuring greater than a predetermined dew point range to decrease the amount of return air traveling through the second airflow path across the cooling coil.