I've had all of M&M's art supplies put up in a closet on high shelves because I didn't want her getting into the stuff and making a mess. I would just get out everything I needed for a project. After seeing all of these cool art areas on other blogs I decided that M&M is old enough to take responsibility and have some freedom.
In one corner our playroom is an art area. There is a table and chairs, of course. I don't care if she writes on the table or chairs. (You'll have to excuse the blinding whiteness of the walls. We moved into our house a year and a half ago, but are still working on getting all of the rooms painted.)
On the wall I've put hooks so that I can hang up little buckets. One bucket has crayons and another one has washable markers and colored pencils. The third one has a dry erase marker, eraser, tape, gluestick and safety scissors. (I saw the idea for the use of buckets somewhere, but it was one of those that I didn't save to Evernote so I don't remember where it came from. If it was you please leave a comment.)
The other wall has these Post-It Pockets on it. One with paper and the other with stickers that I've peeled the backing off of so that it's easier for her to get the stickers off. It came in a three pack and I've used the other one by my computer to put all of my lists in. Now I don't have papers all over the place. Okay, I still do, but they aren't lists!
We had this shelf from when we lived in an apartment so we put it up high to keep other stuff like beads, coloring books, etc. that I don't want Bubba getting into. He's pulling himself up on everything and it's driving me nuts! I've had to reconfigure everything in my house now. Oh well, he's cute so I'll keep him.
When we have cousins or friends over to play I take the buckets off and put them on the shelf so they can't reach them.