The Internet Assigned Numbers Authority (IANA) has reserved the

following three blocks of the IP address space for private internets:

10.0.0.0 - 10.255.255.255 (10/8 prefix)
172.16.0.0 - 172.31.255.255 (172.16/12 prefix)
192.168.0.0 - 192.168.255.255 (192.168/16 prefix)
We will refer to the first block as "24-bit block", the second as
"20-bit block", and to the third as "16-bit" block. Note that (in
pre-CIDR notation) the first block is nothing but a single class A
network number, while the second block is a set of 16 contiguous
class B network numbers, and third block is a set of 256 contiguous
class C network numbers.
An enterprise that decides to use IP addresses out of the address
space defined in this document can do so without any coordination
with IANA or an Internet registry. The address space can thus be used
by many enterprises. Addresses within this private address space will
only be unique within the enterprise, or the set of enterprises which
choose to cooperate over this space so they may communicate with each
other in their own private internet.

169.254.0.0/16 - This is the "link local" block. It is allocated for

communication between hosts on a single link. Hosts obtain these
addresses by auto-configuration, such as when a DHCP server may not
be found.
Link-local addresses (Zeroconf)
A second set of private networks is the link-local address range
codified in RFC 3330 and RFC 3927. The intention behind these RFCs
is to provide an IP address (and by implication, network connectivity)
without a DHCP server being available and without having to configure
a network address manually. The network 169.254/16 has been reserved
for this purpose. Within this address range, the networks 169.254.0/24
and 169.254.255/24 have been set aside for future use.
If a host on an IEEE 802 (ethernet) network cannot obtain a network
address via DHCP, an address from 169.254.1.0 to 169.254.254.255 is assigned pse
udorandomly. The standard prescribes that address collisions must be handled gra
cefully.
Link-local addresses have even more restrictive rules than the private network a
ddresses defined in RFC 1918: packets to or from link-local addresses must not b
e allowed to pass through a router at all (RFC 3927, section 7)

Zeroconf or Zero Configuration Networking is a set of techniques that

automatically create a usable IP network without configuration or
special servers. This allows inexpert users to connect computers,
networked printers, and other items together and expect them to work
automatically. Without Zeroconf or something similar, a knowledgeable
user must either set up special services, like DHCP and DNS, or set
up each computer's network settings by hand, which is a tedious task,
and is challenging for non-technical people.
3. Summary Table

Address Block Present Use Reference

---------------------------------------------------------------------
0.0.0.0/8 "This" Network [RFC1700, page 4]
10.0.0.0/8 Private-Use Networks [RFC1918]
14.0.0.0/8 Public-Data Networks [RFC1700, page 181]
24.0.0.0/8 Cable Television Networks --
39.0.0.0/8 Reserved but subject
to allocation [RFC1797]
127.0.0.0/8 Loopback [RFC1700, page 5]
128.0.0.0/16 Reserved but subject
to allocation --
169.254.0.0/16 Link Local --
172.16.0.0/12 Private-Use Networks [RFC1918]
191.255.0.0/16 Reserved but subject
to allocation --
192.0.0.0/24 Reserved but subject
to allocation --
192.0.2.0/24 Test-Net
192.88.99.0/24 6to4 Relay Anycast [RFC3068]
192.168.0.0/16 Private-Use Networks [RFC1918]
198.18.0.0/15 Network Interconnect
Device Benchmark Testing [RFC2544]
223.255.255.0/24 Reserved but subject
to allocation --
224.0.0.0/4 Multicast [RFC3171]
240.0.0.0/4 Reserved for Future Use [RFC1700, page 4]