The first command, ip dhcp pool, creates a pool with the specified name and puts the router in a specialized DHCP configuration mode. In this mode, use the network statement to define the range of addresses to be leased. If specific addresses on the network are to be excluded, return to global configuration mode.

The ip dhcp excluded-address command configures the router to exclude an individual address or range of addresses when assigning addresses to clients. The ip dhcp excluded-address command may be used to reserve addresses that are statically assigned to key hosts, for instance, the interface address on the router.

Typically, a DHCP server will be configured to assign much more than an IP address. Other IP configuration values such as the default gateway can be set from the DHCP configuration mode. Using the default-router command sets the default gateway. The address of the DNS server, dns-server, and WINS server, netbios-name-server, can also be configured here. The IOS DHCP server can configure clients with virtually any TCP/IP information.

The DHCP service is enabled by default on versions of Cisco IOS that support it. To disable the service, use the no service dhcp command. Use the service dhcp global configuration command to re-enable the DHCP server process.