We have a 12" wide, 3.25" actual depth drawer above our closed garbage/recycling pullout that is located adjacent to the sink. Not a huge drawer, but I usually can put about 15-20 towels in there.

Same as cluelessincolorado, a 12" wide drawer to the right of the sink for day to day use. I keep extra towels and other kitchen linens in a linen closet in the kitchen. It's part of the 10' run of pantries. The far left cabinet is the linen closet, it also holds most of our dining room linens, as the french door to the dining room is to the left of the linen closet.

We built in a niche next to each sink and right next to the paper towel holders. That way, it was just as easy to reach for a dish towel as a paper towel. Plus, this filled the space since the towel holder and niche is above a 24 inch drawer.

Excuse the messy pictures!

I keep them in a basket in a lower cabinet. I don't have drawer space for them.

We keep them in the drawer below the double ovens. That is across the aisle from the prep sink (which is also the usual spot for washing hands in our kitchen). That way it is convenient to grab a new one when needed for prep or hands. Since we usually hang towels on an oven door, it's kind of the towel place. The location is also the closest to the kitchen table.

We also keep a supply of bar mop towels in the clean-up sink cabinet.

With a good supply of towels and bar mops handy, we use paper towels a lot less than in our pre-remodel kitchen.

In a 24" wide drawer, just right of cleanup sink. Still convenient enough to the prep sink if necessary. I consider them to be in the class of items for storage in the cleanup zone. Back in the days when the "Read Me" thread contained much more zone division info (measurments, etc), I believe they were listed as such. Placement has worked very well for me.

In a basket under the sink. No cleaning supplies there except for a single spray and DW detergent.

We keep our towels in the top drawer to the right of the sink (and since we have 2 dishwashers, this means it goes from left to right, towels, dw, sink...) Ours is 20" wide with about 4" of storage depth inside, and sometimes still not big enough, but usually it's fine. I'm thinking about going to more cloth and less paper, so I may switch the towels to the deeper drawer underneath.

Mine are in a 14x20 by 7.5 inch drawers across from my sink and to the right of my cooktop. The drawer also holds my hot pads. I love having the towels in a deeper drawer and the items are handy for both sink and cooktop and ovens.
{{!gwi}}

I keep mine on a shelf in the pantry.

Every time I think of a dishtowel drawer, I remember my GF's mother's house. I was helping with the dishes, needed a towel, went in the drawer and uncovered a hammer...I said what's this doing in here? She said she needed her own stash of tools that her 2 boys wouldn't "borrow" and never return....and she knew they'd NEVER look for a dishtowel so would never find them!

Badgergal - I think you took a picture of my towels drawer!! LOL - but very similar to mine!
Annie LOLx2!!

Same here, Badgergal -- I have the same towels, same drawer.

I have a linen closet right around the corner from the kitchen. The towels are all on a shelf which I like. It works for us.

Thanks so much for the ideas and pictures! It's great to see how many towels actually fit in a space. I hadn't really thought of storing them in two separate places, but maybe I will need to do that. Our laundry room in our new house will be on the second floor and we won't have any type of linen closet on the main floor.

And the drawer under the double wall ovens. I forgot about that one. What do people usually store under those?

Our clean kitchen towels are in the bottom shelf of the upper to the right of the sink. They are behind a single short row of vitamin bottles. Easy to grab a dish towel over the bottles.

We also keep a stack of clean washcloths on the counter near the sink, but that is about having a preschooler and not a permanent condition.

I have a ton of kitchen towels so I use two drawers in an 18" 4 drawer unit.

Ok, I admit... I store them on the paper towel holder. I can't remember the last time I used/owned a cloth one!

I have a blind kitchen corner upper right next to my sink. My cabinet maker came up with a great solution for it.
You open the door on the right first and then open the one on the left. He didn't like a folding door because of possible damage. The hinges he used open about 120 degrees so the door can hit the ajoining cabinet.
This is right next to my sink and makes the perfect place for my linens.

open ...

I use the drawer under the oven for stashing flat baking items...cooling racks, baking sheets, etc....