I personally use a Racor 330 filter / water seperator.

You still need to dewater the oil depending on where you get it from. Unless of course you don't mind stopping every 20-30 miles to drain the water out of the filter.

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'84 300CD Turbo 132k (Anthracite Grey) - WVO - My daily driver - Recently named coo-coo-coupe by my daughter.
'84 300D Turbo 240k (Anthracite Grey) - Garage Queen
'83 300D Turbo 220k (Orient Red) - WVO - Wifes daily driver

I'm not a certified mechanic, but I did stay at a HolidayInn Express last night.