Abstract: A method and protocol for Distributed Network Address Translation (“DNAT”) is provided. DNAT is used to overcome the limited address 32-bit address space used for versions of the Internet Protocol (“IP”). DNAT is used with small office or home office networks or other legacy local network that have multiple network devices using a common external network address to communicate with an external network. The protocol includes a port allocation protocol to allocate globally unique ports to network devices on a local computer network. The globally unique ports are used in a combination network address with a common external network address such as an IP address, to identify multiple network devices on a local network to an external network such as the Internet, an intranet, or a public switched telephone network.