Install Squid on CentOS / RHEL 5

Use yum command as follows:
# yum install squid

Loading "installonlyn" plugin
Setting up Install Process
Setting up repositories
Reading repository metadata in from local files
Parsing package install arguments
Resolving Dependencies
--> Populating transaction set with selected packages. Please wait.
---> Package squid.i386 7:2.6.STABLE6-4.el5 set to be updated
--> Running transaction check
Dependencies Resolved
 Package                 Arch       Version          Repository        Size
 squid                   i386       7:2.6.STABLE6-4.el5  updates           1.2 M
Transaction Summary
Install      1 Package(s)
Update       0 Package(s)
Remove       0 Package(s)
Total download size: 1.2 M
Is this ok [y/N]: y
Downloading Packages:
Running Transaction Test
Finished Transaction Test
Transaction Test Succeeded
Running Transaction
  Installing: squid                        ######################### [1/1]
Installed: squid.i386 7:2.6.STABLE6-4.el5

Squid Basic Configuration

Squid configuration file located at /etc/squid/squid.conf. Open file using a text editor:
# vi /etc/squid/squid.conf
At least you need to define ACL (access control list) to work with squid. The defaults port is TCP 3128. Following example ACL allowing access from your local networks and Make sure you adapt to list your internal IP networks from where browsing should be allowed:
acl our_networks src
http_access allow our_networks

Save and close the file. Start squid proxy server:
# chkconfig squid on
# /etc/init.d/squid start


init_cache_dir /var/spool/squid... Starting squid: .       [  OK  ]

Verify port 3128 is open:
# netstat -tulpn | grep 3128

tcp        0      0      *                   LISTEN      20653/(squid)

Open TCP port 3128

Finally make sure iptables is allowing to access squid proxy server. Just open /etc/sysconfig/iptables file:
# vi /etc/sysconfig/iptables
Append configuration:
-A RH-Firewall-1-INPUT -m state --state NEW,ESTABLISHED,RELATED -m tcp -p tcp --dport 3128 -j ACCEPT
Restart iptables based firewall:
# /etc/init.d/iptables restart

Flushing firewall rules:                                   [  OK  ]
Setting chains to policy ACCEPT: filter                    [  OK  ]
Unloading iptables modules:                                [  OK  ]
Applying iptables firewall rules:                          [  OK  ]
Loading additional iptables modules: ip_conntrack_netbios_n[  OK  ]

Client configuration

Open a webbrowser > Tools > Internet option > Network settings > and setup Squid server IP address and port # 3128.

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