Hang new drywall by measuring the space and cutting the drywall to fit. Cut the drywall by scoring it with a utility knife halfway through and then snapping it in half. Nail the drywall into the wood beams, starting with the outside of each panel and then nailing in the middle. Add a nail every 6 inches. You can also use drywall screws. Remember to measure and cut around electrical and light switch outlets.
Install durable, moisture-resistant flooring. Laminate, tile and vinyl are frequently used in bathrooms. If you use locking laminate, put a bead of adhesive in the groove between each board. Although you won't be able to unlock the boards, the adhesive treatment will keep excess water on the floor from leaking down to the subfloor and wrecking it. Apply a flexible caulk around the edges between the laminate and wall to finish the flooring.
Paint the room with a moisture-resistant paint, such as oil-based paint or water-based paint designed for bathrooms and kitchens. These paints do not degrade in a bathroom's high humidity and won't grow mold as quickly as more porous paint. Apply a drywall primer over new drywall and then two coats of bathroom paint.
Attach your toilet in position by aligning the pipes and bolting it to the floor. Measure the space before you purchase the toilet to make sure it will fit properly, this is particularly important in small bathrooms.
Slide the new cabinet or vanity into position and run the pipes into the back. Attach the facets to the sink and set the sink on the vanity top. Connect the pipes underneath the cabinets and turn the water on to check for leaks. Run a bead of silicone caulking along the back and sides of the cabinet where they touch the walls. Wet a finger and run it over the caulking to smooth the surface.
Add a basic flat mirror above the sink using mirror brackets that are screwed into the studs. Use a stud finder to locate the studs. Clip the mirror in position by lowering the mirror into the bottom brackets and sliding the top brackets down to secure the mirror.
Complete the look by installing the lighting above the mirror. Use full-spectrum lighting that will illuminate in front of and around the mirror. Have an electrician assist you if you aren't experiences with electrical work. Remember to turn off the electricity before installing the lighting.