Dnsmasq is a lightweight, easy to configure DNS forwarder and DHCP
server. It is designed to provide DNS and, optionally, DHCP and/or TFTP,
to a small 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 disk-less machines.

Dnsmasq is targeted at home networks using NAT and connected to the
Internet via a modem, cable-modem or ADSL connection but would be a good
choice for any small network where low resource use and ease of
configuration are important.

WWW: http://www.thekelleys.org.uk/dnsmasq/doc.html