diff --git a/bin/dhcpleasor.py b/bin/dhcpleasor.py
index 07e63884f09d..63ed524207e7 100755
--- a/bin/dhcpleasor.py
+++ b/bin/dhcpleasor.py
@@ -27,32 +27,50 @@ sys.path.append(os.path.abspath(os.path.join(__file__, "../../")))
 logging.debug(sys.path)
 import getopt
 from os import environ
+from nova.compute import linux_net
 from nova.compute import network
+from nova import rpc
+
 from nova import flags
 FLAGS = flags.FLAGS
 
 
 def add_lease(mac, ip, hostname, interface):
-    pass
+    if FLAGS.fake_rabbit:
+        network.lease_ip(ip)     
+    else:
+        rpc.cast(FLAGS.cloud_topic, {"method": "lease_ip",
+                "args" : {"address": ip}})
 
 def old_lease(mac, ip, hostname, interface):
-    pass
+    logging.debug("Adopted old lease or got a change of mac/hostname")
     
 def del_lease(mac, ip, hostname, interface):
-    # TODO - get net from interface instead
-    net = network.get_network_by_address(ip)
-    net.release_ip(ip)    
+    if FLAGS.fake_rabbit:
+        network.release_ip(ip)     
+    else:
+        rpc.cast(FLAGS.cloud_topic, {"method": "release_ip",
+                "args" : {"address": ip}})   
     
 def init_leases(interface):
-    return ""
+    net = network.get_network_by_interface(interface)
+    res = ""
+    for host_name in net.hosts:
+        res += "%s\n" % linux_net.hostDHCP(net, host_name, net.hosts[host_name])
+    return res
 
 
 def main(argv=None):
     if argv is None:
         argv = sys.argv
     interface = environ.get('DNSMASQ_INTERFACE', 'br0')
-    old_redis_db = FLAGS.redis_db
-    FLAGS.redis_db = int(environ.get('REDIS_DB', '0'))
+    if int(environ.get('TESTING', '0')):
+        FLAGS.fake_rabbit = True
+        FLAGS.redis_db = 8
+        FLAGS.network_size = 32
+        FLAGS.fake_libvirt=True
+        FLAGS.fake_network=True
+        FLAGS.fake_users = True
     action = argv[1]
     if action in ['add','del','old']:
         mac = argv[2]
@@ -62,7 +80,7 @@ def main(argv=None):
         globals()[action+'_lease'](mac, ip, hostname, interface)
     else:
         print init_leases(interface)
-    FLAGS.redis_db = old_redis_db
+    exit(0)
 
 if __name__ == "__main__":
     sys.exit(main())
diff --git a/docs/conf.py b/docs/conf.py
index 9dfdfc8be65c..bc61f438c994 100644
--- a/docs/conf.py
+++ b/docs/conf.py
@@ -16,7 +16,7 @@ import sys, os
 # If extensions (or modules to document with autodoc) are in another directory,
 # add these directories to sys.path here. If the directory is relative to the
 # documentation root, use os.path.abspath to make it absolute, like shown here.
-#sys.path.append(os.path.abspath('.'))
+sys.path.append(os.path.abspath('/Users/jmckenty/Projects/cc'))
 sys.path.append([os.path.abspath('../nova'),os.path.abspath('../'),os.path.abspath('../vendor')])
 from nova import vendor
 
diff --git a/nova/compute/linux_net.py b/nova/compute/linux_net.py
index b44cf9437a51..c9e5bb1a74e0 100644
--- a/nova/compute/linux_net.py
+++ b/nova/compute/linux_net.py
@@ -98,11 +98,10 @@ def dnsmasq_cmd(net):
         ' --pid-file=%s' % dhcp_file(net['vlan'], 'pid'),
         ' --listen-address=%s' % net.dhcp_listen_address,
         ' --except-interface=lo',
-        ' --dhcp-range=%s,static,120s' % (net.dhcp_range_start),
-        ' --dhcp-lease-max=61',
+        ' --dhcp-range=%s,static,600s' % (net.dhcp_range_start),
         ' --dhcp-hostsfile=%s' % dhcp_file(net['vlan'], 'conf'),
-        ' --dhcp-leasefile=%s' % dhcp_file(net['vlan'], 'leases'),
-        ' ---dhcp-script=%s' % bin_file('dhcpleasor.py')]
+        ' --dhcp-script=%s' % bin_file('dhcpleasor.py'),
+        ' --leasefile-ro']
     return ''.join(cmd)
 
 def hostDHCP(network, host, mac):
diff --git a/nova/compute/network.py b/nova/compute/network.py
index 7a347aa1103d..96b8e9627058 100644
--- a/nova/compute/network.py
+++ b/nova/compute/network.py
@@ -160,7 +160,10 @@ class BaseNetwork(datastore.RedisModel):
             self._add_host(user_id, project_id, address, mac)
             self.express(address=address)
             return address
-        raise exception.NoMoreAddresses()
+        raise exception.NoMoreAddresses("Project %s with network %s" % (project_id, str(self.network)))
+
+    def lease_ip(self, ip_str):    
+        logging.debug("Leasing allocated IP %s" % (ip_str))
 
     def release_ip(self, ip_str):
         if not ip_str in self.assigned:
@@ -419,14 +422,22 @@ def get_vlan_for_project(project_id):
             return vlan
     raise exception.AddressNotAllocated("Out of VLANs")
 
+def get_project_id_for_vlan(vlan):
+    assigned_vlans = get_assigned_vlans()
+    for project_id, project_vlan in assigned_vlans.iteritems():
+        if vlan == project_vlan:
+            return project_id
+
+def get_network_by_interface(iface, security_group='default'):
+    vlan = iface.rpartition("br")[2]
+    return get_project_network(get_project_id_for_vlan(vlan), security_group)
 
 def get_network_by_address(address):
-    logging.debug("Get Network By Address:")
+    logging.debug("Get Network By Address: %s" % address)
     for project in users.UserManager.instance().get_projects():
-        logging.debug("  looking at project %s", project.id)
         net = get_project_network(project.id)
-        logging.debug("   is %s in %s ?" % (address, str(net.assigned)))
         if address in net.assigned:
+            logging.debug("Found %s in %s" % (address, project.id))
             return net
     raise exception.AddressNotAllocated()
 
@@ -438,6 +449,12 @@ def allocate_ip(user_id, project_id, mac):
 
 def deallocate_ip(address):
     return get_network_by_address(address).deallocate_ip(address)
+    
+def release_ip(address):
+    return get_network_by_address(address).release_ip(address)
+    
+def lease_ip(address):
+    return get_network_by_address(address).lease_ip(address)
 
 def get_project_network(project_id, security_group='default'):
     """ get a project's private network, allocating one if needed """
diff --git a/nova/endpoint/cloud.py b/nova/endpoint/cloud.py
index 931c6c6e1a07..269fb3950400 100644
--- a/nova/endpoint/cloud.py
+++ b/nova/endpoint/cloud.py
@@ -498,6 +498,14 @@ class CloudController(object):
         # TODO - Strip the IP from the instance
         return defer.succeed({'disassociateResponse': ["Address disassociated."]})
 
+    def release_ip(self, context, private_ip, **kwargs):
+        self.network.release_ip(private_ip)
+        return defer.succeed({'releaseResponse': ["Address released."]})
+
+    def lease_ip(self, context, private_ip, **kwargs):
+        self.network.lease_ip(private_ip)
+        return defer.succeed({'leaseResponse': ["Address lease."]})
+
     @rbac.allow('projectmanager', 'sysadmin')
     def run_instances(self, context, **kwargs):
         # make sure user can access the image
diff --git a/nova/tests/network_unittest.py b/nova/tests/network_unittest.py
index 4c9f340c1a47..8cbc2b7cd8eb 100644
--- a/nova/tests/network_unittest.py
+++ b/nova/tests/network_unittest.py
@@ -21,6 +21,7 @@
 import os
 import logging
 import unittest
+import time
 
 from nova import vendor
 import IPy
@@ -86,18 +87,36 @@ class NetworkTestCase(test.TrialTestCase):
         self.assertEqual(False, address in self._get_project_addresses("project0"))
 
     def test_range_allocation(self):
+        mac = utils.generate_mac()
+        secondmac = utils.generate_mac()
+        hostname = "test-host"
         address = network.allocate_ip(
-                "netuser", "project0", utils.generate_mac())
+                    "netuser", "project0", mac)
         secondaddress = network.allocate_ip(
-                "netuser", "project1", utils.generate_mac())
+                "netuser", "project1", secondmac)
+        net = network.get_project_network("project0", "default")
+        secondnet = network.get_project_network("project1", "default")
+        
         self.assertEqual(True,
                          address in self._get_project_addresses("project0"))
         self.assertEqual(True,
                          secondaddress in self._get_project_addresses("project1"))
         self.assertEqual(False, address in self._get_project_addresses("project1"))
+        # Addresses are allocated before they're issued
+        self.dnsmasq.issue_ip(mac, address, hostname, net.bridge_name)
+        self.dnsmasq.issue_ip(secondmac, secondaddress, 
+                                hostname, secondnet.bridge_name)
+        
         rv = network.deallocate_ip(address)
+        self.dnsmasq.release_ip(mac, address, hostname, net.bridge_name)
         self.assertEqual(False, address in self._get_project_addresses("project0"))
+        # First address release shouldn't affect the second
+        self.assertEqual(True,
+         secondaddress in self._get_project_addresses("project1"))
+        
         rv = network.deallocate_ip(secondaddress)
+        self.dnsmasq.release_ip(secondmac, secondaddress, 
+                                hostname, secondnet.bridge_name)
         self.assertEqual(False,
                          secondaddress in self._get_project_addresses("project1"))
 
@@ -127,9 +146,14 @@ class NetworkTestCase(test.TrialTestCase):
         for i in range(0, 30):
             name = 'toomany-project%s' % i
             self.manager.create_project(name, 'netuser', name)
+            net = network.get_project_network(name, "default")
+            mac = utils.generate_mac()
+            hostname = "toomany-hosts"
             address = network.allocate_ip(
-                    "netuser", name, utils.generate_mac())
+                    "netuser", name, mac)
+            self.dnsmasq.issue_ip(mac, address, hostname, net.bridge_name)
             rv = network.deallocate_ip(address)
+            self.dnsmasq.release_ip(mac, address, hostname, net.bridge_name)
             self.manager.delete_project(name)
 
     def _get_project_addresses(self, project_id):
@@ -144,15 +168,13 @@ def binpath(script):
 class FakeDNSMasq(object):
     def issue_ip(self, mac, ip, hostname, interface):
         cmd = "%s add %s %s %s" % (binpath('dhcpleasor.py'), mac, ip, hostname)
-        env = {'DNSMASQ_INTERFACE': interface, 'REDIS_DB' : '8'}
+        env = {'DNSMASQ_INTERFACE': interface, 'TESTING' : '1'}
         (out, err) = utils.execute(cmd, addl_env=env)
-        logging.debug(out)
-        logging.debug(err)
+        logging.debug("ISSUE_IP: %s, %s " % (out, err))
     
     def release_ip(self, mac, ip, hostname, interface):
         cmd = "%s del %s %s %s" % (binpath('dhcpleasor.py'), mac, ip, hostname)
-        env = {'DNSMASQ_INTERFACE': interface, 'REDIS_DB' : '8'}
+        env = {'DNSMASQ_INTERFACE': interface, 'TESTING' : '1'}
         (out, err) = utils.execute(cmd, addl_env=env)
-        logging.debug(out)
-        logging.debug(err)
+        logging.debug("RELEASE_IP: %s, %s " % (out, err))
         
\ No newline at end of file
diff --git a/nova/utils.py b/nova/utils.py
index cbfdd835d9ac..62ad00aecddf 100644
--- a/nova/utils.py
+++ b/nova/utils.py
@@ -48,11 +48,9 @@ def fetchfile(url, target):
     execute("curl %s -o %s" % (url, target))
 
 def execute(cmd, input=None, addl_env=None):
-    #logging.debug("Running %s" % (cmd))
     env = os.environ.copy()
     if addl_env:
         env.update(addl_env)
-    logging.debug(env)
     obj = subprocess.Popen(cmd, shell=True, stdin=subprocess.PIPE,
         stdout=subprocess.PIPE, stderr=subprocess.PIPE, env=env)
     result = None