Abstract: The present invention assigns appropriate IP addresses to hosts in a local network depending upon the desired features for each host. A list of hosts in the network along with features available for each host may be generated, for example, by a graphical user interface displayed to a user. The user may select a desired feature for a specific host in the network. The selected feature may be analyzed to determine if it requires a static IP address for the host, and if required, a static IP address may be assigned to the host. If the specified feature requiring the static IP address is subsequently disabled, the static IP address may be returned to a pool of available IP addresses, and a dynamic IP address may be assigned to the host. The IP addresses are preferably assigned to the host in accordance with the Dynamic Host Configuration Protocol.