That's brilliant news Coaster! 
With cloth nappies, I have always used the pocket nappies with DS - no separate waterproof layer needed, just the cloth nappy itself plus a cloth liner which you slot inside a pocket (you can get liners made of various materials including cotton and bamboo - some, like bamboo, are more absorbent so are less likely to leak, but take longer to dry after washing so pros and cons). I then put a flushable paper liner in the nappy as I put it on. When changing, the paper liner goes down the toilet with any poo (this reduces the amount of poo that gets stuck to the actual nappy), pull out the washable liner, then put the liner and nappy into a mesh wash bag inside a plastic bin. Every other day the bin gets full so I just take out the mesh bag and throw the whole lot into the machine (no need to touch the dirty nappies!).
I believe that when researched, even when you take into account the washing costs, with modern machines being more efficient with the water, and only using, at most, half the amount of detergent as a normal load, cloth nappies are still far more cost-efficient and better for the environment than disposables.
The only downside I found was that you do have to be prepared to change them every 2 to 2.5hrs or so, so DS has always worn disposables at night as I've never found a cloth nappy that can cope with being worn for 11 hours overnight.
They are just the cutest things though - in the summer DS quite often wears just his cloth nappy and a t-shirt
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