We just treat it like soiled clothing, and use a bucket with a lid, and keep it in the room. As with soiled cloths, we bag it and put it in the bucket. For kids in cloth full-time (not toilet training or using disposables) it'd be easier if they had heir own bucket because then the parents would just take the whole bucket and not have to dig through soiled clothing to find all the nappies. Liners also make it easier if you have carers who will bin the liner, or flush a flushable liner.