A method and apparatus for controlling a compressor system by sensing a temperature of compressed fluid in an outlet of a compressor and automatically reducing an output of the compressor when the temperature exceeds a predetermined temperature and a pressure in the outlet exceeds a predetermined pressure. High and low pressure settings may be provided so that the controller operates the compressor system at the appropriate setting based on the temperature of the compressed fluid in the compressor outlet. The output of the compressor may be controlled by limiting an amount of air permitted to enter the compressor's inlet and/or controlling the compressor's throttle. A three-way valve may also be provided to allow a user to chose between the high and low pressure settings.