In order to fix your faucet, you may need to remove the packing nut. This allows you better access to the body of the faucet and lets you inspect while you are in there for more issues. If you find yourself in a situation where you need to remove the packing nut, here is a quick guide to help you.
Step 1 - Turn Off Water Supply
Before you begin this project make sure that you turn the water off. You can turn it off from the main source or just from that area. Turn the valve clockwise near the faucet to do it just in that area.
Step 2 - Remove Packing Nut
Pry off the cap of the screw with a flat head screwdriver. There is a small notch on the top of it that you can use to pry it off. Once you remove the screw you can take off the handle. Use the wrench to take off the packing screw then and you will see the nut and can pull it off.
Step 3 - Replace Packing Nut
Place the nut the same way that you took it off. Then, replace the packing screw and the securing screw.