This is what I have done: I have made a file, resolv.servers with the nameservers I want to use. I have edited resolv.conf so that it looks at 127.0.0.1. I have put PEERDNS=no into ifcfg-eth0 so that resolv.conf does not get overwritten at boot. I have edited dnsmasq.conf to use only resolv.servers in strict order. I am able to connect to the internet and I can verify that I am using my chosen nameservers, so this setup appears to be working. I have set up 2 computers and have exactly the same files in both. On one computer, when I type dig someplace.com the search takes ~300ms and subsequently ~0ms and no lights flash on my adsl router. Caching appears to work. On the other computer, when I type dig someplace.com the search takes ~300ms and subsequently ~35ms and lights flash on my adsl router. I suspect caching is not working. What is happening here? How does one properly set up dnsmasq to do dns caching? Why is the same setup acting differently on the 2 machines? Network Manager is not enabled on either machine. Any ideas?