A method of traffic forwarding and disambiguation through the use of local proxies and addresses. The technique leverages DNS to on-ramp traffic to a local proxy. The local proxy runs on the end user's device. According to a first embodiment, DNS is used to remap what would normally be a wide range of IP addresses to localhost based on 127.0.0.0/8 listening sockets, where the system can then listen for connections and data. In a second embodiment, a localhost proxy based on a TUN/TAP interface (or other packet interception method) with a user-defined CIDR range to which the local DNS server drives traffic is used. Requests on that local proxy are annotated (by adding data to the upstream connection).