I'm not really sure what to do with my guest bathroom. I purchased my townhome two years ago and the paint and/or sheetrock seems to have some water damage near the shower head in the bathroom - above the actual shower container. Only on the one side near the shower head is the paint peeling up and or has cracked off. The sheetrock is swollen in parts and it looks like there is no caulking left. In some patches the paint and sheetrock have come off to reveal the metal wiring underneath. What needs to be done? I have 'All Purpose Joint Compound' for sheet rock and I also have Premium Grade Patch-n-Paint lightweight spackling - both left-over from some patch jobs I've done before. For something like a bathroom, is special humid/water resistance sheetrock patch/spackling needed? What is the best thing to do to prevent further damage?