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You could cut and remove the drywall 1” off the floor. Then use a good quality caulk (I would recommend urethane) to fill in the 1” space, and then cover the caulk with 4” rubber cove base. (It would help if this were done on your neighbor’s side of the wall also.
This will only work for minor flooding less than 1” deep and is not the best way to solve the problem. To solve the problem for deeper water, as well as being the best fix, you should remove the wall and replace it with masonry.
[This message has been edited by GlennG (edited March 28, 2002).]