diff --git a/root/etc/dnsmasq.conf b/root/etc/dnsmasq.conf
new file mode 100644
index 0000000000..c62f7f991c
--- /dev/null
+++ b/root/etc/dnsmasq.conf
@@ -0,0 +1,22 @@
+# filter what we send upstream
+domain-needed
+bogus-priv
+filterwin2k
+
+# allow /etc/hosts and dhcp lookups via *.lan
+local=/lan/
+domain=lan
+
+# no dns queries from the wan
+except-interface=vlan1
+
+# enable dhcp (start,end,netmask,leasetime)
+dhcp-range=192.168.1.100,192.168.1.250,255.255.255.0,12h
+dhcp-leasefile=/tmp/dhcp.leases
+
+# allow a /etc/ethers for static hosts
+read-ethers
+
+# other useful options:
+# default route(s): dhcp-option=3,192.168.1.1,192.168.1.2
+#    dns server(s): dhcp-option=6,192.168.1.1,192.168.1.2
diff --git a/root/etc/init.d/S50services b/root/etc/init.d/S50services
index 4b24e421c5..bdd1102f9b 100755
--- a/root/etc/init.d/S50services
+++ b/root/etc/init.d/S50services
@@ -1,5 +1,4 @@
 #!/bin/sh
 /usr/sbin/telnetd -l /bin/login
 /usr/sbin/httpd -p 80 -h /www -r WRT54G Router
-/usr/sbin/udhcpd /etc/udhcpd.conf
-#dnsmasq started from /etc/inittab
+/usr/sbin/dnsmasq
diff --git a/root/etc/inittab b/root/etc/inittab
index 3425bf3f8b..352f6a4508 100644
--- a/root/etc/inittab
+++ b/root/etc/inittab
@@ -1,3 +1,2 @@
 ::sysinit:/etc/init.d/rcS
 ::shutdown:/sbin/halt
-::respawn:/usr/sbin/dnsmasq -d -l /tmp/udhcpd.leases -s lan
diff --git a/root/etc/udhcpd.conf b/root/etc/udhcpd.conf
deleted file mode 100644
index a82eb37b4e..0000000000
--- a/root/etc/udhcpd.conf
+++ /dev/null
@@ -1,12 +0,0 @@
-max_leases 200
-start 192.168.1.20
-end 192.168.1.250
-interface br0
-lease_file /tmp/udhcpd.leases
-domain lan
-pidfile /tmp/udhcpd.pid
-option dns 192.168.1.1
-option subnet 255.255.255.0
-option router 192.168.1.1
-lease 7200
-