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I was poking around the House Beautiful site and found this great idea. I know Readymade had posted about this on their blog some time ago, but this photo was so beautifully executed. Where do you get pegboard with that big of holes? Does anyone know?
You can probably use standard 1/4″ diameter-hold pegboard with 1/4″ pegs, or turn down 1/2″ dowels to 1/4″ by 1/4″ deeps at one end. Careful, however, many nominal 1/4″ pegboards are actually 5/32″.
If you want a board that is a little more decorative than hardboard pegboard, try panels with perforations designed for garages - called “garage liners” or “garage panels”. Georgia Pacific still makes them in simulated wood-grain. Masonite use to, but they don’t any longer.