The idea is that the water runs down behind it and collects in a sump in the floor and is pumped out.
The studwork then goes against this, with the rigid board insulation between, then the v.b., and then the drywall. This system collects and then discharges penetrating ground water, and also prevents interstitial condensation in the insulation and studwork.
If any ads are present below my answer or words underlined/colored, I do not condone/support/use the product or services listed/linked to, they are there without my consent.
WELCOME to the forums, if I forgot to say it!