Lab environment for Active Directory learning without a real DNS

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I am trying to setup a lab type of environment for learning Active directory environment using Virtual machines on HyperV. I am planning to create a VM using Windows 2008 R2 Standard. When I google around on step of setting up Active Directory and Domain controller, one of the requirement is to configure TCP/IP and DNS network configuration. What I am confused about if I don’t have any static IP address or registered domain name (like www.mydomain.com etc), can I still setup DNS and proceed with setting up my lab for AD setup?

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Dave On BEST ANSWER

From my experience, DNS is used to resolve hostnames and allow any machines connected to the domain to contact the Domain Controller. Just setup your domain as [Your Domain Name here].local to avoid any conflicts with external domains and you're all set.