dnsmasq is the most popular caching DNS choice for small-to-medium deployments is which is both a lightweight DNS server and a lightweight DHCP server. It is a standard package in modern Linux distributions. If your distro doesn't provide it, though, you can download and install the source without too much trouble; there are no major external package dependencies.
Installing dnsmasq on Fedora
# yum install dnsmasq
Open the file /etc/dnsmasq.conf as root. There are several dozen configuration options -- all of them well-documented -- but it only takes a few to get set up for normal use. Near the top, uncomment out the listen-address= directive and add the localhost address 127.0.0.1: listen-address=127.0.0.1. This tells dnsmasq to listen for DNS queries that originate on the local machine.
Edit /etc/resolv.conf, and add nameserver 127.0.0.1 to the top. The locally-running copy of dnsmasq will now receive all DNS queries first, and cache the results.
Starting dnsmasq Service
# /etc/init.d/dnsmasq start
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