Why is Server 2012 assigning “169.254.*.*” series when creating DHCP server

dhcpwindows-server-2012

I have a small office, with ATT Motorola modem (192.168.1.254) set as passthrough to
Dlink DIR-815 (LAN 192.168.0.1)
I am trying to setup DHCP server on Server 2012, and when I create new DHCP server, the title is created as 169.254.. instead of the domain name. (Domain clients can retrieve IP's as defined in the scope)

Non-domain clients are not receiving IP's from the server but rather the Motorola…
How do I assure DHCP setup is properly creating itself, and how do I make sure domain and non-domain clients get IP's from the server?

Best Answer

Are you sure those 169.254 address are being assigned via DHCP by the modem? Those aren't private subnet addresses, they're link local autoconfig addresses. They're supposed to be used by hosts that don't have a static IP and can't reach a DHCP server to get an authoritative address.

I would guess that your DHCP service isn't working and that the hosts are configuring themselves with that address range.

If those are Windows hosts, does ipconfig /renew return immediately with success or does it time out?