dnsmasq '--read-ethers' and '--address' interaction

I run dnsmasq on a server (specifically OpenWrt) to act as both DHCP and DNS. OpenWrt DHCP configuration /etc/config/dhcp: option readethers '1' list address '/my-phone.lan/172.28.79.133' Which is equivalent to running: dnsmasq --read-ethers --address='/my-phone.lan/172.28.79.133' nslookup works and resolves the name to IP correctly. I set this in /etc/ethers: 00:c7:11:b4:19:1a my-phone.lan From dnsmasq manpage: > **-Z, --read-ethers** > Read /etc/ethers for information about hosts for the DHCP server. The format of /etc/ethers is a hardware address, followed > by either a hostname or dotted-quad IP address. When read by dnsmasq > these lines have exactly the same effect as --dhcp-host options > containing the same information. /etc/ethers is re-read when dnsmasq > receives SIGHUP. IPv6 addresses are NOT read from /etc/ethers. When my phone connects to the network, it does not receive the DHCP lease 172.28.79.133. But if I don't use dnsmasq --address and instead set it in /etc/hosts: 172.28.79.133 my-phone.lan It works and my phone does receive the correct DHCP lease. Why is that?