diff --git a/src/libvirt_private.syms b/src/libvirt_private.syms
index 2573b8acf1..f1a9e7e964 100644
--- a/src/libvirt_private.syms
+++ b/src/libvirt_private.syms
@@ -246,6 +246,13 @@ virDevicePCIAddressParseXML;
 # dnsmasq.h
 dnsmasqAddDhcpHost;
 dnsmasqAddHost;
+dnsmasqCapsGet;
+dnsmasqCapsGetBinaryPath;
+dnsmasqCapsGetVersion;
+dnsmasqCapsNewFromBuffer;
+dnsmasqCapsNewFromFile;
+dnsmasqCapsNewFromBinary;
+dnsmasqCapsRefresh;
 dnsmasqContextFree;
 dnsmasqContextNew;
 dnsmasqDelete;
diff --git a/src/network/bridge_driver.c b/src/network/bridge_driver.c
index 67ee2622e3..2387143f12 100644
--- a/src/network/bridge_driver.c
+++ b/src/network/bridge_driver.c
@@ -85,6 +85,7 @@ struct network_driver {
     char *networkConfigDir;
     char *networkAutostartDir;
     char *logDir;
+    dnsmasqCapsPtr dnsmasqCaps;
 };
 
 
@@ -271,7 +272,8 @@ networkFindActiveConfigs(struct network_driver *driver) {
                 char *radvdpidbase;
 
                 ignore_value(virPidFileReadIfAlive(NETWORK_PID_DIR, obj->def->name,
-                                                   &obj->dnsmasqPid, DNSMASQ));
+                                                   &obj->dnsmasqPid,
+                                                   dnsmasqCapsGetBinaryPath(driver->dnsmasqCaps)));
 
                 if (!(radvdpidbase = networkRadvdPidfileBasename(obj->def->name))) {
                     virReportOOMError();
@@ -389,6 +391,8 @@ networkStartup(bool privileged) {
         goto out_of_memory;
     }
 
+    /* if this fails now, it will be retried later with dnsmasqCapsRefresh() */
+    driverState->dnsmasqCaps = dnsmasqCapsNewFromBinary(DNSMASQ);
 
     if (virNetworkLoadAllConfigs(&driverState->networks,
                                  driverState->networkConfigDir,
@@ -514,6 +518,8 @@ networkShutdown(void) {
     if (driverState->iptables)
         iptablesContextFree(driverState->iptables);
 
+    virObjectUnref(driverState->dnsmasqCaps);
+
     networkDriverUnlock(driverState);
     virMutexDestroy(&driverState->lock);
 
@@ -616,7 +622,8 @@ networkBuildDnsmasqArgv(virNetworkObjPtr network,
                         virNetworkIpDefPtr ipdef,
                         const char *pidfile,
                         virCommandPtr cmd,
-                        dnsmasqContext *dctx)
+                        dnsmasqContext *dctx,
+                        dnsmasqCapsPtr caps ATTRIBUTE_UNUSED)
 {
     int r, ret = -1;
     int nbleases = 0;
@@ -848,7 +855,8 @@ cleanup:
 
 int
 networkBuildDhcpDaemonCommandLine(virNetworkObjPtr network, virCommandPtr *cmdout,
-                                  char *pidfile, dnsmasqContext *dctx)
+                                  char *pidfile, dnsmasqContext *dctx,
+                                  dnsmasqCapsPtr caps)
 {
     virCommandPtr cmd = NULL;
     int ret = -1, ii;
@@ -876,8 +884,8 @@ networkBuildDhcpDaemonCommandLine(virNetworkObjPtr network, virCommandPtr *cmdou
     if (!virNetworkDefGetIpByIndex(network->def, AF_UNSPEC, 0))
         return 0;
 
-    cmd = virCommandNew(DNSMASQ);
-    if (networkBuildDnsmasqArgv(network, ipdef, pidfile, cmd, dctx) < 0) {
+    cmd = virCommandNew(dnsmasqCapsGetBinaryPath(caps));
+    if (networkBuildDnsmasqArgv(network, ipdef, pidfile, cmd, dctx, caps) < 0) {
         goto cleanup;
     }
 
@@ -891,7 +899,8 @@ cleanup:
 }
 
 static int
-networkStartDhcpDaemon(virNetworkObjPtr network)
+networkStartDhcpDaemon(struct network_driver *driver,
+                       virNetworkObjPtr network)
 {
     virCommandPtr cmd = NULL;
     char *pidfile = NULL;
@@ -935,7 +944,10 @@ networkStartDhcpDaemon(virNetworkObjPtr network)
     if (dctx == NULL)
         goto cleanup;
 
-    ret = networkBuildDhcpDaemonCommandLine(network, &cmd, pidfile, dctx);
+    dnsmasqCapsRefresh(&driver->dnsmasqCaps, false);
+
+    ret = networkBuildDhcpDaemonCommandLine(network, &cmd, pidfile,
+                                            dctx, driver->dnsmasqCaps);
     if (ret < 0)
         goto cleanup;
 
@@ -988,7 +1000,8 @@ cleanup:
  *  Returns 0 on success, -1 on failure.
  */
 static int
-networkRefreshDhcpDaemon(virNetworkObjPtr network)
+networkRefreshDhcpDaemon(struct network_driver *driver,
+                         virNetworkObjPtr network)
 {
     int ret = -1, ii;
     virNetworkIpDefPtr ipdef;
@@ -996,7 +1009,7 @@ networkRefreshDhcpDaemon(virNetworkObjPtr network)
 
     /* if there's no running dnsmasq, just start it */
     if (network->dnsmasqPid <= 0 || (kill(network->dnsmasqPid, 0) < 0))
-        return networkStartDhcpDaemon(network);
+        return networkStartDhcpDaemon(driver, network);
 
     /* Look for first IPv4 address that has dhcp defined. */
     /* We support dhcp config on 1 IPv4 interface only. */
@@ -1038,7 +1051,8 @@ cleanup:
  *  Returns 0 on success, -1 on failure.
  */
 static int
-networkRestartDhcpDaemon(virNetworkObjPtr network)
+networkRestartDhcpDaemon(struct network_driver *driver,
+                         virNetworkObjPtr network)
 {
     /* if there is a running dnsmasq, kill it */
     if (network->dnsmasqPid > 0) {
@@ -1047,7 +1061,7 @@ networkRestartDhcpDaemon(virNetworkObjPtr network)
         network->dnsmasqPid = -1;
     }
     /* now start dnsmasq if it should be started */
-    return networkStartDhcpDaemon(network);
+    return networkStartDhcpDaemon(driver, network);
 }
 
 static int
@@ -1245,7 +1259,8 @@ cleanup:
 }
 
 static int
-networkRefreshRadvd(virNetworkObjPtr network)
+networkRefreshRadvd(struct network_driver *driver ATTRIBUTE_UNUSED,
+                    virNetworkObjPtr network)
 {
     /* if there's no running radvd, just start it */
     if (network->radvdPid <= 0 || (kill(network->radvdPid, 0) < 0))
@@ -1265,7 +1280,8 @@ networkRefreshRadvd(virNetworkObjPtr network)
 #if 0
 /* currently unused, so it causes a build error unless we #if it out */
 static int
-networkRestartRadvd(virNetworkObjPtr network)
+networkRestartRadvd(struct network_driver *driver,
+                    virNetworkObjPtr network)
 {
     char *radvdpidbase;
 
@@ -1313,8 +1329,8 @@ networkRefreshDaemons(struct network_driver *driver)
              * dnsmasq and/or radvd, or restart them if they've
              * disappeared.
              */
-            networkRefreshDhcpDaemon(network);
-            networkRefreshRadvd(network);
+            networkRefreshDhcpDaemon(driver, network);
+            networkRefreshRadvd(driver, network);
         }
         virNetworkObjUnlock(network);
     }
@@ -2224,7 +2240,8 @@ networkStartNetworkVirtual(struct network_driver *driver,
 
 
     /* start dnsmasq if there are any IP addresses (v4 or v6) */
-    if ((v4present || v6present) && networkStartDhcpDaemon(network) < 0)
+    if ((v4present || v6present) &&
+        networkStartDhcpDaemon(driver, network) < 0)
         goto err3;
 
     /* start radvd if there are any ipv6 addresses */
@@ -2988,7 +3005,7 @@ networkUpdate(virNetworkPtr net,
             /* these sections all change things on the dnsmasq commandline,
              * so we need to kill and restart dnsmasq.
              */
-            if (networkRestartDhcpDaemon(network) < 0)
+            if (networkRestartDhcpDaemon(driver, network) < 0)
                 goto cleanup;
 
         } else if (section == VIR_NETWORK_SECTION_IP_DHCP_HOST) {
@@ -3009,8 +3026,8 @@ networkUpdate(virNetworkPtr net,
             }
 
             if ((newDhcpActive != oldDhcpActive &&
-                networkRestartDhcpDaemon(network) < 0) ||
-                networkRefreshDhcpDaemon(network) < 0) {
+                 networkRestartDhcpDaemon(driver, network) < 0) ||
+                networkRefreshDhcpDaemon(driver, network) < 0) {
                 goto cleanup;
             }
 
@@ -3021,7 +3038,7 @@ networkUpdate(virNetworkPtr net,
              * can just update the config files and send SIGHUP to
              * dnsmasq.
              */
-            if (networkRefreshDhcpDaemon(network) < 0)
+            if (networkRefreshDhcpDaemon(driver, network) < 0)
                 goto cleanup;
 
         }
@@ -3030,7 +3047,7 @@ networkUpdate(virNetworkPtr net,
             /* only a change in IP addresses will affect radvd, and all of radvd's
              * config is stored in the conf file which will be re-read with a SIGHUP.
              */
-            if (networkRefreshRadvd(network) < 0)
+            if (networkRefreshRadvd(driver, network) < 0)
                 goto cleanup;
         }
 
diff --git a/src/network/bridge_driver.h b/src/network/bridge_driver.h
index 638a6ac813..8c16bdd228 100644
--- a/src/network/bridge_driver.h
+++ b/src/network/bridge_driver.h
@@ -1,7 +1,7 @@
 /*
  * network_driver.h: core driver methods for managing networks
  *
- * Copyright (C) 2006, 2007, 2011 Red Hat, Inc.
+ * Copyright (C) 2006-2012 Red Hat, Inc.
  * Copyright (C) 2006 Daniel P. Berrange
  *
  * This library is free software; you can redistribute it and/or
@@ -48,7 +48,8 @@ int networkGetNetworkAddress(const char *netname, char **netaddr)
 
 int networkBuildDhcpDaemonCommandLine(virNetworkObjPtr network,
                                       virCommandPtr *cmdout, char *pidfile,
-                                      dnsmasqContext *dctx)
+                                      dnsmasqContext *dctx,
+                                      dnsmasqCapsPtr caps)
     ;
 # else
 /* Define no-op replacements that don't drag in any link dependencies.  */
@@ -56,7 +57,7 @@ int networkBuildDhcpDaemonCommandLine(virNetworkObjPtr network,
 #  define networkNotifyActualDevice(iface) (iface=iface, 0)
 #  define networkReleaseActualDevice(iface) (iface=iface, 0)
 #  define networkGetNetworkAddress(netname, netaddr) (-2)
-#  define networkBuildDhcpDaemonCommandLine(network, cmdout, pidfile, dctx) 0
+#  define networkBuildDhcpDaemonCommandLine(network, cmdout, pidfile, dctx, caps) 0
 # endif
 
 typedef char *(*networkDnsmasqLeaseFileNameFunc)(const char *netname);
diff --git a/src/util/dnsmasq.c b/src/util/dnsmasq.c
index 9d1c07b477..4f210d2130 100644
--- a/src/util/dnsmasq.c
+++ b/src/util/dnsmasq.c
@@ -39,8 +39,10 @@
 
 #include "internal.h"
 #include "datatypes.h"
+#include "bitmap.h"
 #include "dnsmasq.h"
 #include "util.h"
+#include "command.h"
 #include "memory.h"
 #include "virterror_internal.h"
 #include "logging.h"
@@ -583,3 +585,277 @@ dnsmasqReload(pid_t pid ATTRIBUTE_UNUSED)
 
     return 0;
 }
+
+/*
+ * dnsmasqCapabilities functions - provide useful information about the
+ * version of dnsmasq on this machine.
+ *
+ */
+struct _dnsmasqCaps {
+    virObject object;
+    char *binaryPath;
+    bool noRefresh;
+    time_t mtime;
+    virBitmapPtr flags;
+    unsigned long version;
+};
+
+static virClassPtr dnsmasqCapsClass;
+
+static void
+dnsmasqCapsDispose(void *obj)
+{
+    dnsmasqCapsPtr caps = obj;
+
+    virBitmapFree(caps->flags);
+    VIR_FREE(caps->binaryPath);
+}
+
+static int dnsmasqCapsOnceInit(void)
+{
+    if (!(dnsmasqCapsClass = virClassNew("dnsmasqCaps",
+                                         sizeof(dnsmasqCaps),
+                                         dnsmasqCapsDispose))) {
+        return -1;
+    }
+
+    return 0;
+}
+
+VIR_ONCE_GLOBAL_INIT(dnsmasqCaps)
+
+static void
+dnsmasqCapsSet(dnsmasqCapsPtr caps,
+               dnsmasqCapsFlags flag)
+{
+    ignore_value(virBitmapSetBit(caps->flags, flag));
+}
+
+
+#define DNSMASQ_VERSION_STR "Dnsmasq version "
+
+static int
+dnsmasqCapsSetFromBuffer(dnsmasqCapsPtr caps, const char *buf)
+{
+    const char *p;
+
+    caps->noRefresh = true;
+
+    p = STRSKIP(buf, DNSMASQ_VERSION_STR);
+    if (!p)
+       goto fail;
+    virSkipSpaces(&p);
+    if (virParseVersionString(p, &caps->version, true) < 0)
+        goto fail;
+
+    if (strstr(buf, "--bind-dynamic"))
+        dnsmasqCapsSet(caps, DNSMASQ_CAPS_BIND_DYNAMIC);
+
+    VIR_INFO("dnsmasq version is %d.%d, --bind-dynamic is %s",
+             (int)caps->version / 1000000, (int)(caps->version % 1000000) / 1000,
+             dnsmasqCapsGet(caps, DNSMASQ_CAPS_BIND_DYNAMIC)
+             ? "present" : "NOT present");
+    return 0;
+
+fail:
+    p = strchrnul(buf, '\n');
+    virReportError(VIR_ERR_INTERNAL_ERROR,
+                   _("cannot parse %s version number in '%.*s'"),
+                   caps->binaryPath, (int) (p - buf), buf);
+    return -1;
+
+}
+
+static int
+dnsmasqCapsSetFromFile(dnsmasqCapsPtr caps, const char *path)
+{
+    int ret = -1;
+    char *buf = NULL;
+
+    if (virFileReadAll(path, 1024 * 1024, &buf) < 0)
+        goto cleanup;
+
+    ret = dnsmasqCapsSetFromBuffer(caps, buf);
+
+cleanup:
+    VIR_FREE(buf);
+    return ret;
+}
+
+static int
+dnsmasqCapsRefreshInternal(dnsmasqCapsPtr caps, bool force)
+{
+    int ret = -1;
+    struct stat sb;
+    virCommandPtr cmd = NULL;
+    char *help = NULL, *version = NULL, *complete = NULL;
+
+    if (!caps || caps->noRefresh)
+        return 0;
+
+    if (stat(caps->binaryPath, &sb) < 0) {
+        virReportSystemError(errno, _("Cannot check dnsmasq binary %s"),
+                             caps->binaryPath);
+        return -1;
+    }
+    if (!force && caps->mtime == sb.st_mtime) {
+        return 0;
+    }
+    caps->mtime = sb.st_mtime;
+
+    /* Make sure the binary we are about to try exec'ing exists.
+     * Technically we could catch the exec() failure, but that's
+     * in a sub-process so it's hard to feed back a useful error.
+     */
+    if (!virFileIsExecutable(caps->binaryPath)) {
+        virReportSystemError(errno, _("dnsmasq binary %s is not executable"),
+                             caps->binaryPath);
+        goto cleanup;
+    }
+
+    cmd = virCommandNewArgList(caps->binaryPath, "--version", NULL);
+    virCommandSetOutputBuffer(cmd, &version);
+    virCommandSetErrorBuffer(cmd, &version);
+    virCommandAddEnvPassCommon(cmd);
+    virCommandClearCaps(cmd);
+    if (virCommandRun(cmd, NULL) < 0) {
+        virReportSystemError(errno, _("failed to run '%s --version': %s"),
+                             caps->binaryPath, version);
+        goto cleanup;
+    }
+    virCommandFree(cmd);
+
+    cmd = virCommandNewArgList(caps->binaryPath, "--help", NULL);
+    virCommandSetOutputBuffer(cmd, &help);
+    virCommandSetErrorBuffer(cmd, &help);
+    virCommandAddEnvPassCommon(cmd);
+    virCommandClearCaps(cmd);
+    if (virCommandRun(cmd, NULL) < 0) {
+        virReportSystemError(errno, _("failed to run '%s --help': %s"),
+                             caps->binaryPath, help);
+        goto cleanup;
+    }
+
+    if (virAsprintf(&complete, "%s\n%s", version, help) < 0) {
+        virReportOOMError();
+        goto cleanup;
+    }
+
+    ret = dnsmasqCapsSetFromBuffer(caps, complete);
+
+cleanup:
+    virCommandFree(cmd);
+    VIR_FREE(help);
+    VIR_FREE(version);
+    VIR_FREE(complete);
+    return ret;
+}
+
+static dnsmasqCapsPtr
+dnsmasqCapsNewEmpty(const char *binaryPath)
+{
+    dnsmasqCapsPtr caps;
+
+    if (dnsmasqCapsInitialize() < 0)
+        return NULL;
+    if (!(caps = virObjectNew(dnsmasqCapsClass)))
+        return NULL;
+    if (!(caps->flags = virBitmapNew(DNSMASQ_CAPS_LAST)))
+        goto error;
+    if (!(caps->binaryPath = strdup(binaryPath ? binaryPath : DNSMASQ)))
+        goto error;
+    return caps;
+
+error:
+    virReportOOMError();
+    virObjectUnref(caps);
+    return NULL;
+}
+
+dnsmasqCapsPtr
+dnsmasqCapsNewFromBuffer(const char *buf, const char *binaryPath)
+{
+    dnsmasqCapsPtr caps = dnsmasqCapsNewEmpty(binaryPath);
+
+    if (!caps)
+        return NULL;
+
+    if (dnsmasqCapsSetFromBuffer(caps, buf) < 0) {
+        virObjectUnref(caps);
+        return NULL;
+    }
+    return caps;
+}
+
+dnsmasqCapsPtr
+dnsmasqCapsNewFromFile(const char *dataPath, const char *binaryPath)
+{
+    dnsmasqCapsPtr caps = dnsmasqCapsNewEmpty(binaryPath);
+
+    if (!caps)
+        return NULL;
+
+    if (dnsmasqCapsSetFromFile(caps, dataPath) < 0) {
+        virObjectUnref(caps);
+        return NULL;
+    }
+    return caps;
+}
+
+dnsmasqCapsPtr
+dnsmasqCapsNewFromBinary(const char *binaryPath)
+{
+    dnsmasqCapsPtr caps = dnsmasqCapsNewEmpty(binaryPath);
+
+    if (!caps)
+        return NULL;
+
+    if (dnsmasqCapsRefreshInternal(caps, true) < 0) {
+        virObjectUnref(caps);
+        return NULL;
+    }
+    return caps;
+}
+
+/** dnsmasqCapsRefresh:
+ *
+ *   Refresh an existing caps object if the binary has changed. If
+ *   there isn't yet a caps object (if it's NULL), create a new one.
+ *
+ *   Returns 0 on success, -1 on failure
+ */
+int
+dnsmasqCapsRefresh(dnsmasqCapsPtr *caps, const char *binaryPath)
+{
+    if (!*caps) {
+        *caps = dnsmasqCapsNewFromBinary(binaryPath);
+        return *caps ? 0 : -1;
+    }
+    return dnsmasqCapsRefreshInternal(*caps, false);
+}
+
+const char *
+dnsmasqCapsGetBinaryPath(dnsmasqCapsPtr caps)
+{
+    return caps ? caps->binaryPath : DNSMASQ;
+}
+
+unsigned long
+dnsmasqCapsGetVersion(dnsmasqCapsPtr caps)
+{
+    if (caps)
+        return caps->version;
+    else
+        return 0;
+}
+
+bool
+dnsmasqCapsGet(dnsmasqCapsPtr caps, dnsmasqCapsFlags flag)
+{
+    bool b;
+
+    if (!caps || virBitmapGetBit(caps->flags, flag, &b) < 0)
+        return false;
+    else
+        return b;
+}
diff --git a/src/util/dnsmasq.h b/src/util/dnsmasq.h
index ad612be52e..e8881a01eb 100644
--- a/src/util/dnsmasq.h
+++ b/src/util/dnsmasq.h
@@ -1,5 +1,5 @@
 /*
- * Copyright (C) 2007-2010 Red Hat, Inc.
+ * Copyright (C) 2007-2012 Red Hat, Inc.
  * Copyright (C) 2010 Satoru SATOH <satoru.satoh@gmail.com>
  *
  * This library is free software; you can redistribute it and/or
@@ -22,6 +22,7 @@
 #ifndef __DNSMASQ_H__
 # define __DNSMASQ_H__
 
+# include "virobject.h"
 # include "virsocketaddr.h"
 
 typedef struct
@@ -65,6 +66,16 @@ typedef struct
     dnsmasqAddnHostsfile *addnhostsfile;
 } dnsmasqContext;
 
+typedef enum {
+   DNSMASQ_CAPS_BIND_DYNAMIC = 0, /* support for --bind-dynamic */
+
+   DNSMASQ_CAPS_LAST,             /* this must always be the last item */
+} dnsmasqCapsFlags;
+
+typedef struct _dnsmasqCaps dnsmasqCaps;
+typedef dnsmasqCaps *dnsmasqCapsPtr;
+
+
 dnsmasqContext * dnsmasqContextNew(const char *network_name,
                                    const char *config_dir);
 void             dnsmasqContextFree(dnsmasqContext *ctx);
@@ -79,4 +90,13 @@ int              dnsmasqSave(const dnsmasqContext *ctx);
 int              dnsmasqDelete(const dnsmasqContext *ctx);
 int              dnsmasqReload(pid_t pid);
 
+dnsmasqCapsPtr dnsmasqCapsNewFromBuffer(const char *buf,
+                                        const char *binaryPath);
+dnsmasqCapsPtr dnsmasqCapsNewFromFile(const char *dataPath,
+                                      const char *binaryPath);
+dnsmasqCapsPtr dnsmasqCapsNewFromBinary(const char *binaryPath);
+int dnsmasqCapsRefresh(dnsmasqCapsPtr *caps, const char *binaryPath);
+bool dnsmasqCapsGet(dnsmasqCapsPtr caps, dnsmasqCapsFlags flag);
+const char *dnsmasqCapsGetBinaryPath(dnsmasqCapsPtr caps);
+unsigned long dnsmasqCapsGetVersion(dnsmasqCapsPtr caps);
 #endif /* __DNSMASQ_H__ */
diff --git a/tests/networkxml2argvtest.c b/tests/networkxml2argvtest.c
index 87519e4881..69cbd1c1c6 100644
--- a/tests/networkxml2argvtest.c
+++ b/tests/networkxml2argvtest.c
@@ -46,7 +46,9 @@ static int replaceTokens(char **buf, const char *token, const char *replacement)
     return 0;
 }
 
-static int testCompareXMLToArgvFiles(const char *inxml, const char *outargv) {
+static int
+testCompareXMLToArgvFiles(const char *inxml, const char *outargv, dnsmasqCapsPtr caps)
+{
     char *inXmlData = NULL;
     char *outArgvData = NULL;
     char *actual = NULL;
@@ -78,7 +80,7 @@ static int testCompareXMLToArgvFiles(const char *inxml, const char *outargv) {
     if (dctx == NULL)
         goto fail;
 
-    if (networkBuildDhcpDaemonCommandLine(obj, &cmd, pidfile, dctx) < 0)
+    if (networkBuildDhcpDaemonCommandLine(obj, &cmd, pidfile, dctx, caps) < 0)
         goto fail;
 
     if (!(actual = virCommandToString(cmd)))
@@ -102,21 +104,27 @@ static int testCompareXMLToArgvFiles(const char *inxml, const char *outargv) {
     return ret;
 }
 
+typedef struct {
+    const char *name;
+    dnsmasqCapsPtr caps;
+} testInfo;
+
 static int
 testCompareXMLToArgvHelper(const void *data)
 {
     int result = -1;
+    const testInfo *info = data;
     char *inxml = NULL;
     char *outxml = NULL;
 
     if (virAsprintf(&inxml, "%s/networkxml2argvdata/%s.xml",
-                    abs_srcdir, (const char*)data) < 0 ||
+                    abs_srcdir, info->name) < 0 ||
         virAsprintf(&outxml, "%s/networkxml2argvdata/%s.argv",
-                    abs_srcdir, (const char*)data) < 0) {
+                    abs_srcdir, info->name) < 0) {
         goto cleanup;
     }
 
-    result = testCompareXMLToArgvFiles(inxml, outxml);
+    result = testCompareXMLToArgvFiles(inxml, outxml, info->caps);
 
 cleanup:
     VIR_FREE(inxml);
@@ -140,23 +148,34 @@ static int
 mymain(void)
 {
     int ret = 0;
+    dnsmasqCapsPtr restricted
+        = dnsmasqCapsNewFromBuffer("Dnsmasq version 2.48", DNSMASQ);
+    dnsmasqCapsPtr full
+        = dnsmasqCapsNewFromBuffer("Dnsmasq version 2.63\n--bind-dynamic", DNSMASQ);
 
     networkDnsmasqLeaseFileName = testDnsmasqLeaseFileName;
 
-#define DO_TEST(name) \
-    if (virtTestRun("Network XML-2-Argv " name, \
-                    1, testCompareXMLToArgvHelper, (name)) < 0) \
-        ret = -1
+#define DO_TEST(xname, xcaps)                                        \
+    do {                                                             \
+        static testInfo info;                                        \
+                                                                     \
+        info.name = xname;                                           \
+        info.caps = xcaps;                                           \
+        if (virtTestRun("Network XML-2-Argv " xname,                 \
+                        1, testCompareXMLToArgvHelper, &info) < 0) { \
+            ret = -1;                                                \
+        }                                                            \
+    } while (0)
 
-    DO_TEST("isolated-network");
-    DO_TEST("routed-network");
-    DO_TEST("nat-network");
-    DO_TEST("netboot-network");
-    DO_TEST("netboot-proxy-network");
-    DO_TEST("nat-network-dns-txt-record");
-    DO_TEST("nat-network-dns-srv-record");
-    DO_TEST("nat-network-dns-srv-record-minimal");
-    DO_TEST("nat-network-dns-hosts");
+    DO_TEST("isolated-network", restricted);
+    DO_TEST("netboot-network", restricted);
+    DO_TEST("netboot-proxy-network", restricted);
+    DO_TEST("nat-network-dns-srv-record-minimal", restricted);
+    DO_TEST("routed-network", full);
+    DO_TEST("nat-network", full);
+    DO_TEST("nat-network-dns-txt-record", full);
+    DO_TEST("nat-network-dns-srv-record", full);
+    DO_TEST("nat-network-dns-hosts", full);
 
     return ret==0 ? EXIT_SUCCESS : EXIT_FAILURE;
 }