Turn off the gas and power supply.
Turn off the cold water supply.
Open the pressure relief valve on the water heater.
Attach the hose to the existing valve.
Open the drain valve to drain the water. Make sure all the water is drained before closing the pressure relief valve.
Remove the old drain valve and set it on the side.
Put the tape on the threads of the new valve and mount the new valve.
Tighten the valve with the wrench.
Open the hot water faucet to ensure valve is working. Then open the cold water valve. Let the water heater fill completely. Once the water comes out smoothly close faucet and valve. Make sure valve is not leaking.
Turn the gas and power back on. Make sure there is proper flow and that the water is hot enough.