When I moved from the dry climate of Central California to the rainy Pacific Northwest, I was dismayed to find that ALL of my favorite hand tools were rusting. I consulted local woodworkers, mechanics and contractors to see how they battled this distressing issue. Here is what they had to say:Rub a thin coat of clear paste wax on the exposed metal portion of your tools after each use. This is especially helpful for saw blades, wood planes and chisels since most woodworkers already have a tin of wax on hand.

Invest in vapor corrosion inhibitors if your tools are stored in some type of enclosure. This VCI method is often used for industrial packaging and VCI papers, emitters and foam shields are available to line your tool chest drawers or to protect larger storage areas. These products are environmentally and user safe. They are non-toxic, organically derived and contain no nitrates, silicones, phosphates, heavy metals or other toxic chemicals and will not harm plastics.Visit this website for more info about Hvof Thermal Spray Coating and Air Plasma Spray Coating here. 

Invest in commercial grade, specialty rust-preventive coatings for your high value power tools such as drill presses, table saws, band saws, joiners and planers.

Dampen a clean rag with WD-40 and rub it on all of your tools. It is a great multi-use product, inexpensive and readily available. Use a clean cloth to wipe any excess, slippery coating off of your tools before you use them.
If possible, store your tools in a less damp environment. Use a fan to circulate air or store them in a closet with a dehumidifier unit or put a light bulb at floor level, since heat rises, and leave it on all day every day.Add packets of silica gel desiccant to each of your tool drawers to absorb moisture. The packets are rechargeable and this method does not apply any coating on your tools.Get to know more about ​Rusting.

Invest in vapor corrosion inhibitors if your tools are stored in some type of enclosure. This VCI method is often used for industrial packaging and VCI papers, emitters and foam shields are available to line your tool chest drawers or to protect larger storage areas. These products are environmentally and user safe. They are non-toxic, organically derived and contain no nitrates, silicones, phosphates, heavy metals or other toxic chemicals and will not harm plastics.
Invest in commercial grade, specialty rust-preventive coatings for your high value power tools such as drill presses, table saws, band saws, joiners and planers.

And if money is no object, build a climate-controlled workshop. But you will still need to protect those tools that come in contact with moisture as part of their designed use (i.e., plumbing tools, outdoor applications, landscape tools, etc.)
Then you can fill your workshop with a full complement of beautiful, heirloom-quality wooden tool chests and your shop will be a supremely organized showplace that will be the envy of your friends and neighbors.

In summary, there are three main choices for protecting your tools from rust:

1. Apply a protective coating

2. Reduce the moisture level

3. Use a rust-inhibiting vapor