Cut a peg board to the desired size for the craft wall, using a circular or handsaw. A size of at least 4 by 4 feet provides enough room for a small wall.
Paint the peg board with a thin coat of spray paint or latex wall paint in the desired color. Use a cotton swab to remove any paint that collects in the peg holes.
Trim a roll of cork backing so it fits over the top half of the peg board. For a 4-by-4-foot board, cut the cork so it measures 2 by 4 feet. Use a utility knife to make clean cuts through the cork.
Attach the cork to the top of the board using wood glue. Follow the instructions on the label, to ensure correct glue application and curing time.
Locate the studs on the wall where you are hanging the craft board. Use an electronic stud finder or tap the wall lightly with a hammer. The studs sound solid when tapped, while areas with no studs sound hollow. Mark the stud location with a pencil.
Place the board on the wall and nail it in place in all four corners. Position the nails so they penetrate into a stud. Position the board so a preschooler can reach the peg board section easily.
Attach peg board hooks to the peg holes. Hang small buckets from the hooks. Place a different craft supply in each bucket, such as crayons, glue sticks or felt shapes. Use colorful tacks to display the competed craft projects on the cork bulletin board section.