Drywall around shower stall

I have a fiberglass shower stall and when it is used, water splashes
off of who ever is using it and wets the first 4-6 inches of wall at
the top of the shower stall. This of course has eventually caused the
paint and what ever else the builder used to crack. What are my
options? I figure worse case, I can cut out the first foot or so up
of drywall/greenboard replace and tile. Is there any type of mud or
paint I could use to seal the wall?

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Relevant Pages

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