Dnsmasq is a lightweight, easy to configure, DNS forwarder and DHCP server, designed to provide DNS (and optionally DHCP) services to a small-scale network. It can serve the names of local machines which are not in the global DNS. The DHCP server integrates with the DNS server and allows machines with DHCP-allocated addresses to appear in the DNS with names configured either in each host or in a central configuration file. Dnsmasq supports static and dynamic DHCP leases and BOOTP for network booting of diskless machines.
The developers of dnsmasq targeted home networks using NAT and connected to the internet via a modem, cable-modem or ADSL connection. But the system would function well in any small network where low resource-use and ease of configuration are important.