If you tile the walls then you need cement backer board and not just green board. Make sure that you fir out your studs surrounding the tub by around 1/4" or 1/2" so that the backer board goes OVER the top lip of the edge of the tub. This way, if any water makes it through the tile it will hit the cement board and since it OVERLAPS the top tub flange, it will go back into the tub and not into your wall.
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