I have been using dnsmasq on mac osx mountain lion which was installed via mac ports. Recently,I upgraded to Osx Mavericks and all of a sudden it has stopped working.
I
The reason for why dnsmasq local-only domain not works any more on maverick is because BIND is no longer installed - even when the command line developer tools are added.
Here is link for detailed explanations.
Solved mine by doing the following:
If your development domains are not .dev, then change the bolded parts to your domain. If you need other domains, you need to only repeat steps 2 and 6.
Source: This brilliant blog post by Alan Ivey.
I had issue with DNS after upgrade, in which is just wouldn't start from UI. Not using DNSMASQ myself, though you could look at this to see if is connected to your problem.
https://discussions.apple.com/message/23469825#23469825
Edit (as root) plist at /var/db/launchd.db/com.apple.launchd/overrides.plist
Look for <key>org.isc.named</key>
Set value of <key>Disabled</key>
to <false/>
.