A waterproof removable panelized wall system permanently resistant to water damage. The present system may be included as part of a complete basement fit out, or may be utilized in a restoration of an area that has incurred water damage and may be used to repair of a wall structure that has been compromised or damaged by a wet condition. A plurality of waterproof, non-absorbent panels are arranged in a wall structure and are removable from and reinstallable on the wall structure. An attachment mechanism in the form of a magnetic component, such as, a magnetic strip or a plurality of magnets is provided to releasably secure the panels and moldings to the wall frame structure.