The valve is located on the RH rear frame rail flange just behind the fuel tank. It is attached via a link to the rear axle. Its a big, ugly thing. I took mine off this X-mas break and installed the bypass line. It looks great and works great. It was pretty easy to install, except that I was a moron when bleeding the brakes and kept knocking over the bleed bottle... I used almost 1 quart of brake fluid when bleeding, so make sure you buy the big bottle.
Before I installed the bypass line, I tie-strapped the valve link in the loaded position. Basically, if you move the link approx 1 to 2 inches, its in the loaded position and you get full line pressure to the rears. I had to disconnect the link at the axle and then tie-strapping was easy. This valve is either open or closed. Once you hit the magic dimension of suspension drop, it allows full line pressure to the rears. This is explained in the Service Manual, except they dont give the dimension. I know because my truck stopped better with 3000lbs of slide in camper vs empty, which tipped my that something is allowing the rears to work when loaded.
Hope this helps.