A watercraft comprises a hull, an internal combustion engine, a propulsion system, and an air/water separating device. The separating device comprises a container having an inlet port and an outlet port. The inlet port enables at least ambient air to enter the container and the outlet port is communicated to the air intake of the engine. The separating device has structure providing spaced apart generally vertical surfaces that define a plurality of elongated tortuous paths between the inlet and outlet ports. The tortuous paths have one or more angular portions and are positioned and configured such that the ambient air passes through the elongated tortuous paths so that water suspended in the air is separated from the air as the air passes through angular portions of the paths with the separated water flowing downwardly along the surfaces to a bottom of the container by gravity.