[dba-SQLServer] Temporary Table - Impact on SQL Db size

Hi all,

SQL2005 :
If I daily create a table, populate it with a bunch of data,
use it to perform some updates and then drop it - will this
just keep growing the database or will SQL Server manage the
disk space.... I am asking the question as my experience with
Access Dbs is that ever so often you had to compact the Db if
you did something like this.... Does SQL Server handle this
better, i.e. without user intervention?

Regards
Borge