My toddler just loves helping to hang washing on the line. We have had this toddler sized fold up wooden clothes line for almost 2.5 years now. My eldest used it and now my 2 year old uses it.
I set up this activity/work outside for my toddler to use; my 4 year old and I hung the rest of the washing on a clothes airer close by. It’s nice to all work side by side.
Using pegs can be tricky at this age, but my toddler loves to practice. I have seen some people use dolly pegs with their children, but I like these wooden ones. Its the same as what they use in my son’s Montessori toddler class.You may notice that some of the pegs are upside down, yet it still works. I remember my eldest doing this before she got the hang of using them right way up. Once my toddler had finished hanging up the facecloths, he wanted to hang up something else, so I gave him some socks and some cloth nappy/diaper inserts to hang up as well.
At my son’s Montessori toddler class they have a similar setup for children to practice using pegs and hanging washing on the line, however their washing line looks more like the ORBIT brand Peg n Play metal clothes line that you can buy on Amazon or Ebay. Another way the children in the toddler class practice using pegs is a line that is provided in the outdoor environment for hanging up finished art work (painting and collage).
Edited: Nov 1st 2016 See also Practical Life at home (2.5 and 4.5 years) for more photos of my children hanging washing on the line.