Best way to repair spot water damage/stains on inside ceiling and walls? Heavy rains found their way into a valley on my roof line. I have some drywall peeling on my ceiling and water staining on the wall beneath. The area is not large, but will the entire ceiling and wall need to be repainted for a good color match? The house is only 2 years old, so the paint is relatively fresh. How should I repair the peeling corner?