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A computer running Windows (except Windows NT) will use a system named APIPA (Automatic Private internet Protocol Addressing) to assign itself an IP address.

Using APIPA, the computer will assign itself an IP address from the 169.254.0.0 /16 network which is part of the private class B IP range. The valid address range for this network is 169.254.0.1 to 169.254.255.254 The subnet mask for this network is 255.255.0.0

The computers will use ARP (Address Resolution Protocol) to confirm that the IP address that it has chosen is unique and not being used by any other computer on the local network. When the DHCP server becomes available again, the computers will contact it and attempt to lease or renew a new IP address.

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Q: What IP address will a computer use if the static addressing is not configured and the DHCP server is unavailable?
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