A
system for dehydrating lubricating and hydraulic fluids includes a heating circuit and circuitry for creating a vacuum. The heating circuitry introduces a
stream of heated fluid into a
vacuum chamber in which a partial vacuum is drawn by the vacuum circuit. Aqueous components of the fluid
stream are flashed in the
vacuum chamber by virtue of the elevated temperature and reduced pressure. Dehydrated fluid is then collected and evacuated from the
vacuum chamber. Vapor from the vacuum chamber, including the aqueous components of the fluid
stream are collected, condensed and separately evacuated. The heating circuit limits surface temperature of a
heating element in a closed-loop manner to avoid degradation of the fluid. The fluid stream is introduced into the vacuum chamber or is recirculated through the heating circuit to maintain a desired level of
fluid temperature in a closed-loop manner. The
system includes circuits for evacuating dehydrated fluid in a closed-loop manner and for automatically discharging condensate. The technique avoids undesirable foaming of dehydrated fluid within the vacuum chamber. A vacuum pulsing circuit is provided for periodically pulsing
vacuum pressure within the vacuum chamber to aid in flashing aqueous components from the heated fluid stream.