A pegboard assembly is secured in a spaced relation against a wall. The pegboard assembly has a plurality of pegboard members, in which a first pegboard member is coupled to a second pegboard member by a connector. The pegboard member has a front side and a rear side, and has a plurality of holes defined therethrough. The rear side has an integral spacer element and is adapted to contact the wall such that the holes are adapted to be spaced from the wall.