Centos 5.4 - Setup Transparent Squid Proxy for local network

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In our network, we have setup squid to do transparent proxying for our network clients so that all web bound traffic is redirected via Squid and controlled.

Our firewall configuration is a multi-homed system, whereby there are two network cards (NICs) controlling network traffic. One NIC (eth0) points to an ADSL router and the other NIC (eth1) points to the internal network clients and connects to the internal network switch.

The goals of the project were to:

Below we'll outline steps to get Squid working in this configuration using Centos as the base operating system for this rollout.