How can I cover my ugly hot water heater in my wash room?
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Not sure of the space but a great screen can be used for covering eyesores
https://www.pinterest.com/explore/hide-water-heater/?lp=true
Why not sand and paint it?!!! You could make it whimsical; paint it white and your accent color in large polka dots. Or paint it to blend in. OR put two shutters together with piano hinges, paint the shutters and use that as a cute screen. You could even hang things on the stats once it is standing!
If you have carpentry skills, or know of anyone who does, have a simple frame built in front of the water heater. Then bifold doors can be mounted on the frame. The Restore/Habitat for Humanity is often a good place to get inexpensive doors.
Hot water heaters tend to give off some heat, so I would caution you against any cover up idea that impedes the air flow or accessibility.
Mount a roller blind on the ceiling. Pull it down in front of the hot water heater.