How to Set up DHCP on a Local Area Network

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Last Updated: July 12, 2025

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Setup a quick and easy DHCP server on Windows using dhcpd32.

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You should use a "Private IP Range", otherwise you may well have problems related to traffic to and from your network being routed incorrectly. For a simple LAN, stick with 192.168.0.100, a subnet mask of 255.255.255.0, and a pool size of 50. This will allow up to 50 machines to be set up on your network without having to change anything.
Set the IP address of your computer to 192.168.0.2 with a subnet mask of 255.255.255.0 (an address in the same subnet as the addresses in the pool, but not an address in the pool itself!)

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(192.168.0.100 if you're not sure!)
(if in doubt, 50 is a nice number)
10
Enter the IP address you gave the computer (192.168.0.2) in the field "Def. Router (Opt 3)
- If you have a DNS server on your network, or one accessible to the machines on your network, enter its IP address in the "WINS/DNS Server" box. If you don't or don't know what it means, leave it blank.
If you don't know what that is, follow my addressing scheme and set it to 255.255.255.0
Your DHCP server is now set up!

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Question

What should I put in the def router field?

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Set it as the same as your original IP address (in this example, 192.168.0.2). This will force your system to act as the default route for any clients connecting to it.

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When setting up DHCP on a LAN will it interfere with other computers that are running on the network?

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If other computers are set to obtain IP automatically, your DHCP server will serve those computers too, but will not interfere in any other way.

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What would DHCP primarily be used for on a private LAN?

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It would be used to assign IP address automatically to client computers and devices on the local network (tablets, phones, smart TVs, printers, etc.).

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Tips

If you want to create a large area network, you should use Windows Server 2008 or Windows Server 2012.

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If you don't know how to specify an IP address for your computer that runs the DHCP server, use one of the links here:

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XP http://www.portforward.com/networking/static-xp.htm

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Warnings

If you don't know about private ranges and subnet masks, either read up on them or use my address scheme. Improper addressing can cause you, and possibly others, a BIG headache.

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