A packaged catheter assembly includes a urinary catheter, a package, and a seal. The urinary catheter has a tube section connected between a proximal end and a distal end, and the proximal end of the urinary catheter is insertable into a urinary bladder. The package contains the urinary catheter and has a proximal compartment section that is removable from a distal section of the package to provide an outlet in the distal section of the package. The seal is arranged between an outer surface of the urinary catheter and an inner surface of the distal section of the package. The seal provides a nearly or truly liquid tight interface between the urinary catheter and the inner surface of the distal section of the package.