Moisture Management with Drywall

Moisture can damage drywall and finishes, and bathrooms are one place where moisture is inevitable. To protect the walls, you can leave a gap of as much as 10 inches from the floor. To safeguard the lower portion of the wall, install cement board and then install tile or another moisture-resistant product. In areas less susceptible to moisture, installing moisture-resistant drywall will offer enough protection.
Source: Professional Remodeler (02/18) Dickison, Abe