Comment 81 for bug 1211110

On Ubuntu 17.04, I could get this working with the following steps:

1. rm -rf /etc/resolv.conf

This will tell systemd-resolved not to manage resolve.conf file. Simply disabling systemd-resolved service does not work because of some other depending service is enabled and starts systemd-resolved anyway.

2. Add this line to the [main] section of /etc/NetworkManager/NetworkManager.conf
dns=dnsmasq

Appeartently network manager manages its own instance of dnsmasq so if you have dnsmasq package installed, you should make sure the dnsmasq service is not enabled otherwise this will not work. You can also install dnsmasq-base package instead, which does not include a systemd unit.

A reboot probably is also necessary, I did these via ansible playbooks to create bootable images so this was the case for me. Restarting network manager service might also work.

Hope this helps, best