An automatic drain valve system for collecting and draining a liquid and/or contaminants within a reservoir (45A) including a level sensing float (68A). The liquid or contaminants are introduced into the reservoir through an inlet (48A) and exit the reservoir (45A) through an outlet (206). A control valve which is responsive to the liquid level contained within the reservoir (45A) includes coupled magnetic members which selectively open and close the control valve in response to the liquid within the reservoir (45A) reaching preselected levels. This control valve activates the drain valve (34A) for opening and closing the drain outlet such that the system is automatically drained upon when the liquid within the reservoir reaches a preselected level.