My 8 month old daughter had horrible diaper rash that got raw and was peeling and at some point was itching. I tried coconut oil, collodial silver gel from my "toolkit" (Read: Earthclinic) but they didnt work. I also tried some OTC treatments and they worked for a little bit but it wouldn't clear.
This weekend I decided to try lanolin that I had bought for my cracked nipples that I got when I started breastfeeding. It is working like a charm, her bummy is getting smoother, is healing and not itching at all! I used the type that was intended for cracked nipples and it works so well. So after wiping her bottom during a nappy change, I smear the stuff on and thereafter put on some zinc oxide cream over that. Its working quite well.