1. For a network controller for managing a set of hosts, a method for configuring a host to provide a Dynamic Host Configuration Protocol (DHCP) service, the method comprising: configuring a DHCP module in a first host to provide a DHCP service; configuring a managed forwarding element in the first host to (i) use the DHCP module to obtain network addresses and (ii) forward packets using the obtained network addresses; and configuring a second managed forwarding element in a second host to (i) use the DHCP module to obtain network addresses and (ii) forward packets using the obtained network addresses.