A foundation wall includes a frame having a front side and a back side. The frame further includes a plurality of vertical stud members having a first end and a second end, a top beam attached to the first end of the plurality of vertical stud members, and a bottom beam attached to the second end of the plurality of vertical stud members to define a plurality of cavities between adjoining vertical stud members. Rigid insulation is adapted for positioning in the plurality of cavities to become a load-bearing part of the frame. One or more structural sheets is affixed to the front side of the frame and to the back side of the frame. A waterproof bond is formed along an interface between edges of the one or more structural sheets and a periphery around the front side and the back side of the frame.