That is a one size pocket diaper, designed to grow with a child from usually around 8lbs to potty training time. The liner, called a "soaker pad" or "insert" is made of either microfibre, cotton, hemp, bamboo, sometimes even wool. They fit on a child in pretty much the same fashion as a disposable diaper. :-) VERY user-friendly. No pins or flat sheets or covers.
Because of the ease of use, the fact that it's pretty much all one piece and designed to grow with your child, they usually cost quite a bit of money (with the exception of work at home mom types). That's why there is such a big deal made about proper washing/stripping/no creams or powders, etc. Keep them pristine and they do not depreciate in value much, meaning you can make pretty much all of your money back when it comes time to sell them. :-)
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