I’m on a mission to make my home workshop as useful, functional and organized as possible. In my travels I came across this excellent post on ehow regarding the Best Way to Arrange your Pegboard:
Have a System
If you do not wish to section off your pegboard using tape or a marker, you should still have a system in place. This system can be color-coded with, for example, red designating tools for inside the house designating tools for outside of the house or something similar. The system also could involve placing the most frequently used tools at the top while the least used are at the bottom. It does not matter what system you use, but it is important that you have a system in place or your pegboard will quickly become disorganized.
There are various small touches that you can make to improve your pegboard organizational system. Some users go farther in their use of markers, drawing an outline around each individual tool. This leaves no room for error, showing that there is a very specific place for the tools to go. Hammer the lid of a small jar of nails or screws to your pegboard and to keep the jars out of a drawer. For tools that you use often, you can mount a small horizontal rod on the pegboard so that they can be easily pulled off and put back on.