Fold in half. You should now have a 20" x 45" rectangle.
Turn the fabric so that the right sides of the fabric are together. Sew side seam and bottom. Leave top open.Note: you can also stitch across the top, leaving a small opening to turn right side out.
Turn right side out. Fold top edges over and pin.
Fold bottom edge up 7" and pin sides.
Add pins in the center to mark the sewing line to divide the pocket into 2.
Top stitch around perimeter of the caddy.
Sew through center of the pocket (where you placed pins) to create two pockets.