Flickr Photo by c0t0s0d0
In the cabinet
Store pots and pans in cabinets near the stove. The most convenient way to store cookware in a cabinet is to equip the cabinet with sliding pull-out shelves. Slide-out drawers reduce the need to nest pots and pans, so you can grab what you need without having to move the whole stack. If cabinet space is limited, store seldom-used pots in another location (such as the pantry or garage).
In very small spaces
For extremely limited space, try stackable pots and pans with detachable handles.
Hanging from the ceiling
Hanging pots and pans from the ceiling puts unused space to use and frees up cabinets. Ceiling pot racks come in a variety of shapes and sizes. A rectangular pot rack might fit quite well in a long, rectangular kitchen with an island. if your kitchen is small, try a square or circular rack, which takes up less space. While pots are usually hung facing front to back, which makes them easier to see and reach, pot racks are available for hanging pots sideways so they can nest, thus taking up less space. Make sure pots have handles that can be hung from a hook, and be sure to buy hooks and hardware that will support the weight of your pots.
Hanging on the wall
There are many wall-mounted pot racks on the market. Some even come with a built-in shelf to hold cookbooks or stockpots. A towel bar with S hooks mounted on the wall takes up even less space. Or take a page from Julia Child, who hung her pots and pans on a Peg-Board wall. Use assorted hooks for different size items and reposition them until you've created a configuration that is functional and appealing to the eye. (Julia actually traced the shape of pots and pans onto the Peg-Board to make it easy to return an implement to its rightful spot.) You can cover an entire wall or just hang a small square painted in a bright color to add a design element to the kitchen.
For more cleaning tips, check out What's A Disorganized Person To Do?