Each time I start a new dulcimer or group of dulcimers I take an hour or two and sharpen everything in sight. Occasional stropping keeps my tools sharp but starting a new project is a convenient time to do any necessary grinding and honing.
Since I work in a small shop almost everything happens on the bench. In the photograph above is the setup I use for honing. It is nothing more than a bench hook on which I place my sharpening stones. When not in use the bench hook, diamond stones, and fine water stones live on a shelf and when in use I move it to the bench. The coarse waterstones live in a container of water near by. I usually remember to feed them. I use the same spray bottle I use to mist sides during bending to spritz water on the stones.
I prefer using waterstones because I get a lot of feedback through my fingers while honing and quickly achieve a polished edge. I bought the diamond stones years ago. They are handy when honing a narrow tools that could easily gouge a waterstone but as I have gotten better at using waterstones I rarely need them. When the waterstones need flattening I lap the coarse stones on a cinder block with some water and lap the fine stones on the coarse stones.
On the other end of the bench and not in the photograph is a cherry dulcimer about to receive frets. As I said, everything happens on the bench.
Well, almost everything.