DHCP-DNS question

I have a server setup with DHCP and DNS. DHCP is working and I can see the ip addresses, hardware ethernet, and client-hostname in /var/lib/dhcp/db/dhcp.leases. DNS forwarding seems to be working as I can set up the name servers as my server in Yast, Network devices, Network Card and still get to the internet from both the server and client, but DNS is not working for the network. Question is, how does DNS get the local network ip addresses and host names from the DHCP, or does it? Art