A refueling system including a nozzle configured to dispense fuel through a fuel path thereof into a vehicle tank. The nozzle includes a vapor path configured such that vapor recovered from the vehicle tank during refueling is passable therethrough. The system further includes a sensing valve disposed in the vapor path, wherein the sensing valve is configured to generally block the associated part of the vapor path when a sufficient vacuum from the vehicle tank is applied to the sensing valve during refueling. The system also includes a regulator valve disposed in the vapor path and arranged in series with the sensing valve, the regulator valve being configured to regulate the level of vacuum applied by a vapor pump to the sensing valve.