I have a TINY laundry room, hot water heater/ space-work around??

Can you mount a 2x4 across the back wall and then add different hooks and/or wire baskets to put laundry and cleaning items? Maybe put shelving up as high as you can go above it and keep a collapsible step stool for easy access. I see using the top of your laundry unit is too high for things you use every day. Maybe use that for storage of paper towels, toilet paper and laundry baskets? I used to hang my laundry baskets and buckets from a high shelf on a S hook, but got complaints about heads getting knocked. Not sure what to do to hide the water heater!

Not sure what your question is, but you might consider installing a sliding "barn" door for privacy and decoration. It's the latest home design style and can be a budget friendly remedy. I'd paint the room semi gloss white to brighten up the area and possibly add several floating shelves for storage. Best of luck.

First, I would paint that room something bright whether it's white or you want to go dramatic. For the practical part: Looks like there is just barely room in the corner by the water heater to hang an organizer that will get your mop, broom etc up off the floor.

https://www.walmart.com/ip/Costway-Mop-Holder-Hanger-5-Position-Home-Kitchen-Storage-Broom-Organizer-Wall-Mounted/587198123

Then I would install a bunch of wall baskets along the long wall.

https://www.walmart.com/search/?query=wall%20baskets&cat_id=0

Put a curtain around the ugly water heater, and a prettier curtain across the doorway. The kit below is plenty long enough to do both places and then some!

https://www.amazon.com/Z-COLOR-Plastic-Windows-Balcony-Accessories/dp/B01N2OJLFF/ref=pd_lpo_vtph_201_bs_t_1?_encoding=UTF8&psc=1&refRID=WXHFHVDE8G23RCW9J6PT

You may consider a tankless water heater next time when you need to replace the water heater it can save you a tone of gas and space also. Do you have space for a for down table to fold laundry? Please make sure you leave enough breathing room around the water heater for the pilot light!!!! You can get a sheet or corrugated metal and wrap it around the heater above the controllers

I have the same situation. What I did was go to WISH.COM. in the search area I typed "storage for small spaces". You have a lot of wall space to work with. Wish will give you ideas for various fabric shelving. You will be able to make these yourself (instead of buying from wish). Also if you have a DOLLAR TREE around you then look at their colorful baskets in different sizes and shapes. You can nail or screw these to your walls.

This would fit on the back wall

https://www.hometalk.com/diy/build/furniture/murphy-table-36185740

Then I would suggest getting one of those bars that let you hang the mop, broom, etc.