Compression faucets have water-control handles that twist counterclockwise to increase the flow of water through the faucet and clockwise to decrease the flow of water. A valve stem connects to the inside of the water control handles, with tiny teeth on the valve stem and the inside of the handle locking together. As you turn the handle, the valve stem turns and compresses or squeezes a rubber seat washer that sits below the valve stem inside the faucet.
How much the valve stem inside your compression faucet squeezes the seat washer determines how much water from the water supply lines can flow through the faucet. As you turn the water-control handle counterclockwise, the valve stem rises higher inside the faucet, squeezing the seat washer less and allowing more water to flow between the washer and the valve stem. Turning the water control handle clockwise lowers the valve stem in the faucet, squeezing the seat washer more and constricting the flow of water.
Your compression faucet operates correctly as long as the seat washer stays intact. Like anything rubber, the seat washer cracks or becomes less pliable as it ages. Eventually, the cracks in the washer allow water to leak into the faucet when the valve stem is squeezing the washer as tightly as possible, leading to water leaking out of the faucet’s spout. The faucet squeaks when you turn the handles because the seat washer is wearing out.
You must always cut off the flow of water to a faucet before removing any parts, which you can do by turning both water supply valves under the sink clockwise all the way. Pry out the small cap from the middle of the handle with the bad seat washer and remove the screw that sits under the cap. Pull up on the handle to remove it from the faucet. You must use an adjustable wrench to turn the packing nut and then the valve stem counterclockwise to unthread them from the faucet. Back out the small screw holding the seat washer in place at the bottom of the valve stem and remove the seat. Coating the replacement seat washer with plumber’s grease keeps the washer pliable longer. You then put the faucet back together and restore the water.