The fabric for this dress is a tea towel, bought as a set of three different colours reduced at sainsburys for £1.50. Cotton type tea towels can often be bought very cheap, there are some really pretty colours and patterns and they can be made into all sorts of things. The fabric is easy to work with and makes very nice bunting too.
I have never made childrens clothes before other than fancy dress so I thought this denim fabric would make a nice new dress for my old Teddy Bear, I added some broderie anglaise that I had in my scraps box.

