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Automatic Private IP Addressing

Automatic Private IP Addressing (APIPA) is a feature introduced with Windows 2000; it is also included in Windows XP and Windows Server 2003.

APIPA allows a computer that is configured to obtain an automatic IP address to assign itself an address from a private range should no DHCP server be available. APIPA assigns addresses in the range 169.254.0.1 through 169.254.255.255—a range reserved by Microsoft for just this purpose.

APIPA is really designed for small networks that don’t use a DHCP server. APIPA allows computers running Windows 2000, Windows Server 2003, or Windows XP to plug into a network and recognize one another with little configuration necessary. If your network uses a DHCP server and you see that a client has been assigned an address in the APIPA range, it means the client could not locate a DHCP server.