Cleaning up after water leak...

Hey! New member here, I actually signed up so I could ask about how to locate a water leak I recently discovered. In gathering data to make the problem easier to pinpoint, I actually discovered the leak. The valves to my shower were leaking behind the wall, but only when the water was running. This has only been going on for about 3 weeks, and I only noticed the leak because my carpet began to smell unpleasant in another room. Basically the water was leaking from the valves, down an interior wall, then moving about 10 feet to settle against an exterior wall (all under the carpet). Now that I have located the leak and can fix it, I need some advice as to how to clean this mess up. I am located in Texas, this is a slab house, single story. The carpet closest to the leak itself does not smell (at least not yet) but where it has been pooling smells musty, almost like mildew. I don't want to go the cheap route here and end up with a nasty mold problem, but tearing down walls doesn't really appeal to me. I'm wondering now if I should rip up all the affected carpet, maybe even sheetrock that might have gotten wet? Or will deep-treating only the affected part of the carpet solve the issue? With a semi-closed environment I don't know if I can trust all the moisture to simply evaporate, even with Texas heat on my side. The house was built as part of a development in 1978, so I don't know if treated lumber was used either. Any help there would be appreciated. Hopefully because the leak hasn't been present that long there won't be any major damage. I don't necessarily want to tear my house apart, but I do want to fix this right so I don't have to worry about developing mold allergies or worse. Any input would be greatly appreciated. Thank you!

Without being there to see it, it's hard to see exactly how far you need to go.
First thing I would have done is remove the carpet, removed and tossed the padding, removed the baseboards and cut the sheetrock at least to the height just below where the baseboards sit. This would allow the wall to dry out and by cutting it at that height it's easy to install a new piece without the seam showing as much when it's fixed.
Mold can set in really fast so this is not something to be put off.
I also spray all the exposed wood with bleach and water.
If you find the sheetrock is all punky then it's best to just remove it and replace. Most homes the sheetrock is installed horizontal, if it is in your home it's better to cut it out at that seam, remove the tape on the top piece so there's no hump form when the new tape goes on.

Can you post a picture? I would hire a professional, sometimes diy work in the end won't give you the kind of results youd like.

I just had my home reroofed and a water pipe was hit. I replaced the section that was hit and put a fan blowing on the wall and ceiling where the water was showing on the drywall. The leak affected a portion of the ceiling and part of one interior and exterior wall. The ceiling area under the leak had no insulation on it but exterior wall has batted insulation. My question is should I remove the drywall and batted insulation? The paint on the wall just started to bubble in two small places but all the signs of the water intrusion appear to be near the top of the wall and just affecting a maybe two to three foot from the ceiling to three to four foot off the corner for the two walls.

Welcome to the site. It's always better to start a new thread when you have a question.
I would cut a hole close the ceiling so I could inspect the condition of the drywall and if you have vapour barrier, you might be able to see if water is trapped behind it, or just feel the insulation.
Keep in mind that if you had called your insurance company at the time. Their people would have removed all affected drywall.