@dims:
Suppose, I didn't configure domain manually but configured IP manually, i.e. not using DHCP. This means WPAD won't work then?
As described in draft RFC about WPAD and also in RFC3040, DHCP is only one mechanism tat can be used, client side, to find proxy.pac file.
Other mechanism exist and some should be implemented if you want to ensure that most clients benefit from WPAD.
The resource discovery mechanisms utilized by WPAD are as follows:
* Dynamic Host Configuration Protocol DHCP
* Service Location Protocol SLP
* "Well Known Aliases" using DNS A records
* DNS SRV records
* "service: URLs" in DNS TXT records
implementing DHCP, "well known alias", "DNS SRV records" and "service: URL" is pretty simple.
You will find examples here and there easily.
pfSense documentation covers some aspects.
I tried to produce something with wider coverage (goal was more to focus on proxy design that WPAD)
here.
internet contains a lot of useful example
What you need to understand (and that is not yet clear if I read correctly your posts) is that "well known alias" mechanism relies on your local domain configuration and therefore local DNS too.
This mechanism, launched client side, relies on host FQDN.
Say your workstation name is:
workstation.sub_level2.sub_level1.domain.com
well known alias mechanism will search first for:
wpad.sub_level2.sub_level1.domain.com
then for:
wpad.sub_level1.domain.com
then
wpad.domain.com
By configuring one of these entries in your local DNS, it will allow you browser to find web server hosting proxy.pac file.