A system and method for removing and managing water in liquid hydrocarbons is disclosed. The system and method utilize a water absorbent filter, such as one that utilizes super absorbent polymers, cellulose, cotton or other suitable material to remove water from the system that is either present as free water or as dissolved moisture within the liquid hydrocarbon. The super absorbent polymer filter can be regenerated through the introduction of a dried liquid hydrocarbon, through the use of an air drying system, or a combination of both.