In the late 1996 a number of wall moisture induced problems appeared in Wilmington , NC. Initially these failures concentrated on EIFS (Exterior Insulated Finish Systems) walls, while a number of other walls eventually appeared with the same symptoms. Many prohibitive measures were taken that nearly eliminated the use of such walls systems in the New Hanover, NC region for residential construction. As EIFS wall systems have superior thermal performance (exterior foam insulation is used in addition to the interior cavity insulation), this a major step backwards towards energy efficiency. The Department of Energy in collaboration with the EIMA (Association of EIFS) and the Oak Ridge National Laboratory initiated a three year study in 2004 to measure the performance of a number of key moisture issues. In this paper results will be presented on the thermal and moisture performance of two EIFS walls with innovative liquid applied weather resistive barriers with and without additional water penetration added. The results will show the robustness of these new systems to handle even more hygrothermally challenged conditions as found in Charleston, SC. The results generated from this research indicate that with the latest innovations in liquid applied weather resistive barriers reduce the risk for moisture induced problems in a quantifiable manner.