All air has a certain amount of moisture in it, therefore the compressor will always make water. The water can’t be compressed and is heavier than air, so it will drop out. It has no where else to go other than to the bottom of the tank, hence the “drain daily” decals on every single reciprocating style compressor out there.
It is possible that you could see water downstream in the air lines, but this is usually under prolonged extremely heavy use when the air doesn’t have enough time to cool in the tank allowing the water to condense and drop out. In these instances the air is still hot enough that it will retain the water molecules as it’s being pushed towards the point of use. In cases like these an inline water knock-out, drip leg, desiccant or (preferably) refrigerated dryer is required.
Sloping piping upwards to allow water to drain backwards into the tank is simply absurd, and is counter intuitive to how compressed air piping is done.