A few years ago I had a stuccoed block wall built, after a couple of months I painted the wall with an exterior grade latex paint,the wall paint showed lots of small cracks after a couple of months. So then I repainted with a rubberized paint and now the paint is blistering wherever my neighbours sprinklers hit the wall.Apart from the obvious what other solutions could you suggest.The neighbours side of the fence is unfinished. The wall has a mortar cap, would drilling holes every 10inches in the cap alleviate the problem? thus allowing the hollow blocks to aspirate.I have tried removing the blistered paint and washing the area with water acid solution and then repainting but to no avail.
Thanks for any advice Tony B.

Masonry walls should be painted with a block filler to seal them. Was this done before the stucco was applied? Moisture is probably entering the wall from the unfinished side affecting your side as well. Also might be entering from the ground or above, check for areas where moisture could be entering. I doubt drilling holes in the top would help, might just add more moisture into the wall. Sounds like it may be difficult to fix, might need some marine type paint.

If the block wall is on your property and you own it then you should seal both sides. The blister and cracked stucco and paint must be removed.

A block wall is much like a deck built from treated lumber. You should wait 6 - 12 months before sealing or painting to make sure it has cured. I would remove all the blistered paint and make sure is is dry. Apply a block sealer and then coat with new paint. If you are only going to seal and paint one side of the wall... save your money. The moisture being absorbed on your neighbours side will cause your paint to blister no matter what you do.
Mike