Comment 2 for bug 1059899

As discussed in IRC:

If the domain I assign to nova is its own (which I believe it should be), then it should be authoritative for that zone. As in it shouldn't go asking the upstream resolver to give it answers for things that are delegated to it. This is also true of the reverse zone for the IP blocks that are assigned to nova networks (public and private).

That is, forward and reverse zones should be handed to dnsmasq in server= declarations based on the network and DNS config of the network. Alternatively, running an actual nameserver would be an option, as would having nova-network use nsupdate to update such a beast.

--dns_server doesn't do the trick, since (a) multiple domains are involved and (b) nova already has the answers - making the admin tell it twice is just asking for errors.

Please let me know if there are any more questions on the subject.