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squid proxy fails to resolve LAN host names




Hi all,

Steps to reproduce (query any LAN host running a web server):

$wget http://lanhost 2>&1 | grep response
HTTP request sent, awaiting response... 200 OK

$export http_proxy=proxy:3128

$wget http://lanhost 2>&1 | grep response
Proxy request sent, awaiting response... 503 Service Unavailable

The error message says:

-----------------------

Unable to determine IP address from host name lanhost.
The DNS server returned:
Name Error: The domain name does not exist.
This means that the cache was not able to resolve the hostname presented in the
URL.

-----------------------

It's not a burning problem since running global proxy settings in automatic
mode works fine.
We can also define them per application: browsers, wget, apt etc.

Any other DNS querying (ping, nslookup, host) I tried from LAN clients and proxy container resolved fine.
Nothing helpful in logs.

Any idea why proxy fails to resolve LAN host names only in this specific scenario?

Thanks
Adam