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Yep, it’s an ARB onboard air compressor. Likely used to “air up” after an off-road “air down” situation…
Is it maybe wired to one of your aux switches?
If it's heavily modified, it could be an ARB air locker set up
You pretty well have it figured out already. It is an ARB air compressor. Looks like a single.
You can use it to air tires up and if you have the manifold you can use it to activate and air locker.
Your truck may have a fabricated diff housing that could use an air locker for sure. Your truck may have a torsen in the front and may not need an air locker up there. The previous owner may have used it to air up tires.
Take a look at the compressor and follow what is going to it and what is leaving it. It needs power, it needs a ground, it needs a signal wire for the relay. Leaving it would be an air hose. Does the hose go to a little tank, the manifold, or a remote air chuck, etc.
There are videos and what not of the arb on YouTube, wiring diagrams on their website, etc.