The best way to look after basil is to let the plant tell you it needs watering, as it will start to wilt. Think of the hot dry Mediterranean conditions it is best suited to. The basil plants will quickly spring back up and the stress will actually increase the oil content they are producing, improving the flavour.
It is also important not to water the plants too soon before harvesting the leaves, as this will dilute the flavour. Basil is highly susceptible to chill (below 10°C) or cold draughts - the leaves will start to blacken. In ideal conditions, the basil plant will grow quickly and to stop it getting too leggy, pinch back the stems down to the new side growth as the leaves are harvested. When preparing basil, tear the leaves rather than chopping with a knife as this will stop the damaged edge turning black.