A utility room is a room within a house where equipment not used in day-to-day activities is kept. "Utility" refers to an item which is designed for usefulness or practical use, so in turn most of the items kept in this room have functional attributes. A utility room is generally the area where laundry is done, and is the descendant of the scullery.
Utility room is more commonly used in British English, while North American English generally refer to this room as a laundry room, except in the American Southeast. In Australian English laundry is the usual term.