Comment 16 for bug 1609217

This second one, dnsmasq_local_resolv is not an equivalent - it's deciding whether dnsmasq will look at the local /etc/resolv.conf file, not whether it provides DNS service, as it can still look up local IPs on the private subnets. In other words, by default this is False, but on a booted instance I can still:

$ nslookup 10.0.0.49
Server: 10.0.0.2
Address 1: 10.0.0.2 host-10-0-0-2.openstacklocal

Name: 10.0.0.49
Address 1: 10.0.0.49 host-10-0-0-49.openstacklocal