A proper DHCP server setup and configuration in the networking environment is essential. Implementing a basic DHCP server in Windows network infrastructure requires installing the server; authorizing the server; configuring scopes, exclusions, reservations, and options; activating the scopes; and finally, verifying the configuration.
Having a properly DHCP server setup on the network allows the computers and other DHCP-enabled hosts / clients can obtain the IP addresses and related configuration parameters automatically each time they start and joining the network. DHCP servers provide this configuration in the form of an address lease offer to requesting clients.
DHCP Server Installation
To perform a DHCP server setup in Windows server (2000 / 2003), the DHCP server role must be installed first, since this role is not installed by default. Adding the role into the server is easy using the Windows Components Wizard or through the Manage Your Server window. You need to assign a static IP address to the computer on which you install the DHCP server.
- Installing the DHCP server through the Manage Your Server window, click Start => select Manage your server => Click Add or Remove a Role => Select the DHCP server role. Click Next to start the installation process.
- DHCP server setup can also be done by launching the Windows Components Wizard. Open Control panel => double click Add or Remove Programs => click Add / remove Windows components => select DHCP from Networking Services components.
To be able to perform the DHCP server setup you must be an administrator either as a member of the domain local security group DHCP Administrators or of the global group Domain Admin.
To verify if the installation is completed successfully, open the DHCP console administrative tool. Click Start => select Administrative Tools =>select DHCP. The following figure is shown the DHCP console as the interface from which all features related to the DHCP server, including scopes, exclusions, reservations, and options are configured and managed virtually.

DHCP Scope
Authorizing the DHCP Server
If the DHCP server is integrated into the Active Directory (AD) networks, the next step in DHCP server setup is authorizing it. You can authorize the DHCP server if it is the member of the domain or the DC server. The first DHCP server installed in the AD domain must be an authorized DHCP server.
You cannot authorize stand-alone or workgroup DHCP servers running Microsoft Windows 2000 Server or Windows Server 2003 in AD networks, but they can coexist with these networks as long as they are not deployed on a subnet with any authorized DHCP servers. These servers are known as rogue servers, but this configuration is not recommended. The rogue DHCP server will stop automatically when it detects an authorized server on the same subnet, and it also stops leasing IP addresses to DHCP clients.
How to authorize the DHCP server? Just right-click the server node in the DHCP console and select Authorize.
Configuring Scopes
The next step in DHCP server setup is configuring the Scopes. A DHCP scope is an IP address pool within a logical subnet, such as 192.168.100.11 through 192.168.100.254 that will be assigned to the computer clients. The IP address assigned to the client is known as lease.
When a lease is made to a client, the lease is active with a specified duration, and must be periodically renewed if the client is going to continue to use the address. The default lease duration value is eight days.
A lease is renewed when:
- The lease elapses after 50 percent of the client lease time
- The client is restarted
- When you execute the Ipconfig /renew command from the clients PC.
Creating scope in DHCP server setup can be using the New Scope Wizard by right clicking the DHCP server node in the DHCP console and then selecting New Scope from the Action menu. The following options will need to be configured:
- Scope Name, assigning the scope name
- IP address range, specifying the starting and ending IP addresses defined in the scope, and the subnet mask
- Add exclusions range, defining the IP addresses range that are not to lease to the clients. An exclusion range is a set of one or more IP addresses, included within the range of a defined scope, that you do not want to lease to DHCP clients.
- Lease duration, defining the lease duration values.
Configure DHCP Options
The next step in DHCP server setup wizard is configuring the DHCP options:
- Router (Default Gateway) is optional; specifying which default gateway (and alternates) should be assigned to DHCP clients.
- Domain Name and DNS Servers is optional, specifying both the parent domain and the addresses of DNS servers to be assigned to client.
- WINS Servers page (optional), specifying the addresses of WINS servers (to convert NetBIOS names to IP addresses) to be assigned to the client.
Activating a Scope
The scope must be activated after defining and configuring the scope before the DHCP server can begin providing service to clients.
- Open the DHCP console.
- In the console tree, select the applicable scope.
- From the Action menu, select Activate.
Now, DHCP Server setup is completed and ready to provide IP address leases to the clients.
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