Well, that's the beauty of the plastic bag. You can twist it shut to keep the smell in for short periods.
I had a system like that rigged in a little closet in my camper. Worked fine. I'm still sort of "prepared" in my apartment that way, with a giant kitty litter bucket and a supply of kitchen trash bags, just in case the domestic water service goes out.*
At present, the bucket is used to hold rolled-up targets I want to keep for a while and the trash bags are... you know, like, trash bags, man.
Terry
*it hasn't gone out here for more than an hour or so while they did maintenance stuff, but in a previous apartment some digging machine on Colfax Avenue screwed up the water lines for almost two days.