The condensate that forms in your compressor comes almost entirely from the air. However, it can concentrate pollution in the air and contain a small percentage of oil from the compressor itself, so it will need to be managed as environmental waste. You can pass it through an oil/water separator, allowing the water to go in an ordinary drain with the collected oil removed as part of your service. Why not ask us for more details on Atlas Copco OSC oil/water separators usually available from our stock in most instances.