I was playing around with a different edge--K3, P3 with Sunburst before making the handles.
The drawstring I thread at about eyelet row 8. This is so, if you want, you can bunch the bag up inside of itself and pull tight for storage. If you want you could put the drawstring up toward the top edge of the bag to use as a closure when you are toting things a round.
I think that my girls are going to end up using these for their own personal swim bags. B. is hoping I'll make her a pink version. Actually I am working on hers right now. I'll keep this purple combination (Sugar 'n Cream--color Jewels and Lion Brand--color Purple) for myself along with the blue/white combo.