What are the best practices for installing drywall around a tub flange to ensure a proper and watertight seal?

To ensure a proper and watertight seal when installing drywall around a tub flange, it is important to use moisture-resistant drywall, apply a waterproof membrane or sealant around the flange, and leave a small gap between the drywall and the tub to prevent water damage. Additionally, using fiberglass mesh tape and joint compound to seal the seams can help prevent water infiltration.