Turn off the water at the water supply valves located underneath the sink. The water supply valves are usually oval in shape. To turn the water off, turn the valves in a clockwise direction.
Remove the faucet handle and the faucet's spout. The faucet handle is held into place with a set screw, which is located at the rear of the handle. Remove the set screw with a screwdriver, then lift the handle away. Once the handle is removed, the spout can then be lifted away.
Remove the diverter valve from faucet's body. The diverter valve is a circular piece about the size of a nickel and faces the sink. To remove the valve from the faucet's body, grasp the valve with needlenose pliers and pull the valve away from the faucet's body.
Disconnect the hose from the back of the diverter valve by pulling the valve and the hose in opposite directions.
Coat the smaller end of the new diverter valve with heatproof grease.
Insert the new valve into the valve's hose by twisting the valve onto the hose.
Insert the new diverter valve into the faucet's body.
Slide the faucet spout over the faucet's body, followed by the faucet handle.
Reinsert the set screw at the back of the faucet handle, and secure the screw into place with a screwdriver.
Turn the water to the faucet on by turning the water valves under the sink in a counterclockwise direction to complete the replacement.