How to DNS Masquerade

I have decided to use Linux unbuntu to setup a DNS server and read where masquerading with this is a good idea. Can anyone give me information where I can either use a VLAN and based on this setup a DHCP scope for that subnet. I have 4 subnets and would like to turn on DHCP for each of those subnets. It does not have to be by VLAN but wanted to way that each of my subnets can get an automatic IP and would like to consolidate this to one box that could also perform as a DNS forwarder to the internet from these 4 subnets.
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IMHO, it is best to manage the setup using DHCPD and setup ISC bind for DNS.
You can use dnsmasq instead to achieve both, but the complexity of your VLAN, DHCP scopes .... has to be evaluated wether the DNSMASQ is suitable.
Advantage of ISC Bind is that it will cache the responses as well as provide you with an option to setup your own internal DOMAIN that need not be registered some used mydomain.local

this way you can have your systems register their hostnames and their ips ..........

Internet <=> router <=> LAN Switch= DNS server
your routing rules , vlans will have the DNS server reflected as the name server. The rules between VLAN communication will need to include rigts to have vlans send and receive requests and response from the DNS server....

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