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How to waterproof a masonry blockwall , with a stucco finish painted, often the paint appears to create bubble pockets and destroy the visual surface. Retaining walls in yards have garden beds that require weekly watering and irrigation, but even when french drain systems are implemented, the concrete masonry block wall soak’s up and absorbs the moisture. As the moisture filters through the wall it is slowly breaking down causing water damage and destroying the integrity of the structural block wall. 
Xypex crystaline Concentrate is designed to work as long as the is intact, we have used this process on either the positive or the negative side of painted block wall surfaces. For repairs of existing finishes, all the painted finish coat must get removed. Small jack hammer or pneumatic chisel, the paint and the finish float coat, as well as the brown coat gets demoed off. Any cracks or deteriorated openings need to be treaty and filled prior to the Xypex application. Hairline cracks won’t be affected, but any 1/8″ or larger cannot allow the Xypex formula to perform it’s magic.
Once the demolition process is complete, a slurry mix of Xypex concentrate can be sprayed or brushed on, the thicker the better. After curing is complete a finish stucco can be reapplied to desired appearance. If being painted again, the paint has to be breathable and not an elastomeric sealer or the like. Be sure to consult your local codes and read all instructions pertaining to products used.