Adjust the shower head and curtain or door so water cannot strike the drywall. If the moisture problem involves leaking pipes inside the wall, have a plumber fix these issues before attempting to repair the wall. Let the wall dry completely before proceeding.
Cut a piece of flexible screen material with scissors to roughly the same size as the hole to be patched.
Push the flexible screen material into the hole, pressing in the center so the edges of the screen fit along the inside edges of the hole. The screen material gives the drywall compound something to cling to for patching large holes.
Work the patching compound into the damaged area with a putty knife. Let the compound dry overnight if filling deep holes then apply additional layers until the damaged space is filled in completely.
Sand the wall smooth with fine-grit sandpaper. Wipe the wall surface with a damp rag to remove any dust from the patching compound.
Paint the repair in a matching color with the surrounding wall, applying it with a roller brush for a smooth, even coat.