If a new host connects to a LAN without a DHCP server, how does it receive an IP?
Answer
if a DHCP server is not available.
Reserved addresses from 169.254.0.0-169.254.255.255 is used for automatic addressing. It wont conflict because its non routable
Manual config can also be done. There after TCP IP takes care.
Attribution
Source : Link , Question Author : bzupnick , Answer Author : user229534