If a DHCP server is either not available or does not respond to a request for an IP address, a Windows-based computer will automatically assign itself an IP address from the range 169.254.0.1 to 169.254.255.254.
APIPA allows machines within the same network to communicate with each other when a DHCP server cannot be reached. When this situation occurs, a Windows-based machine auto-assigns itself an IP address within the exclusive range of 169.254.0.1 to 169.254.255.254, allowing limited network functionality.
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