Hi! First...it may be a reaction to how the wool is treated or dyed or washed if it is a soaker. We started have major issues with everything, including wool, and after many many diff purchases, I discovered it was most likely the dye and artificial serging, not the wool itself, thank goodness! Before totally giving up on wool, I would try an undyed/untreated or undyed organic soaker, or a cover that is undyed/untreated or undyed organic without artificial binding(fold over elastic) or serging(try turned and topstitched or organic cotton). I just love giving this info, cause I love wool, and it is more likley to have a reaction to what is in the wool than the wool itself. I would hate for you to have to forego wool mama! That said, the rash may be an allergy, and it may also be a sensitivity, which means it can look a few diff ways depending...My son really just had sensitivities, which triggerd his diaper area eczema. He would get red. The red area would be where the serging hit him. It would take about 2-3 diaper changes to clear. If it got bad, or worse, it swelled a bit above the skin and felt rough to the touch to. As it went away, the skin would not be red, but the are would still feel rough. The redness was not uniform. It was in a specific area, but it was blotchy and raised. If you are having contact dermititis, which is a name they give unknown sensitivity type rashes sometimes, it can be anything from red, and more common is having raised little bumps or dots. Not the unmistakeable purple yeast bumps, but smaller raised bumps, or larger redish yellow, and it is likely dc will try to itch. An allergy may be more severe, with weird pustules or hives in the redness, but it can look alot like contact derm too. Figuring out what it is and what causes it is a headache, I know! I would say that if it goes away shortly after the item is removed, it is probably just a sensitivity, and then start the elimination diet for wool, LOL! I am an allergic person very prone to a whole host of rashes, and so is my son, so we are pretty good at seeing the diff between hives, eczema, psoriasis, and contact derm! Maybe do a google image search to compare pics? And, you can always make an imprompute appt. with your ped, as they see so much eczema and contact derm, and heat rash, they could tell ya in a second flat to be sure, and will be able to tell if it is a more menacing allergy! Just don't tell them you use cloth, cause, well, you know what you will get! GGGGRRRRRRRRRR! Good luck!