Choose a moisture barrier material. There are many different materials that can be used as a vapor barrier in a shed, including rigid foam insulation, fiberglass roll insulation, reinforced plastics, aluminum and stainless steel. Choose a material that is labeled as a moisture barrier, vapor barrier or vapor diffusion retarder and that suits your budget.
Install the material in the walls of your shed. Moisture barriers are typically installed on the inside of the warm side of the wall, in between the wall sheathing and the exterior wall finish.
Finish the outside of the shed walls with any paint or paint-like coating. While home building specialists once believed that only certain types of paint have moisture resistance capabilities, any paint or paint-like coating will help prevent moisture from building up inside your shed.