How Should We Hang Room-Dividing Curtains?

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Q: We are about to move to a new apartment that contains a long living space that is intended to be divided up into a living room and bedroom. In the pictures I've attached (from Craigslist) the living room will be the area next to the kitchen, and the bedroom will be at the other end of the space.

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 I've decided that the best way to divide the space is with curtains (firmly mounted so that our toddler can't rip them down), but I can't decide how to hang them. Within the doorway? Over the doorway at the same height as the window curtains? Should we cover the entire wall, floor-to-ceiling and wall-to-wall? And should the curtains be heavy for maximum privacy and noise buffering, or light and somewhat transparent? Thanks in advance for your opinions!

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Regina is an architect who lives with her husband and children in Lawrence, KS. As a LEED Accredited Professional and longtime contributor to Apartment Therapy and The Kitchn, her focus is on healthy, sustainable living through design.