http://www.vintagepurls.net.nz/Downloads/WeldonsJul1948SwinSuit.pdf Does anyone understand what kind of yarn I should be using for this? It seems to me like yarn would collect the water and become a drooping mess of a summer's day...
Use cotton. It should work just fine, just never EVER wash it in hot water...and maybe steer clear of hot tubs/hot springs.
It depends on what material you make it out of. Silk or cotton would be fine, as long as the cotton wasn't used in a hot spring, etc. I've done it before, and it's just fine.
I've been told that knitted bathing suits are for lounging about, tanning, and wading. Never for active swimming due to their lack of clinging powers.