The document https://github.com/3scale/APIcast/blob/bcd00e0/doc/dns-resolver.md mentions dnsmasq, howerver dnsmasq is not forming part of the APIcast image anymore, see #1090 and https://issues.redhat.com/browse/THREESCALE-1555.
Some other info in the doc might still be relevant though, but it needs to be reviewed and updated according to the current state.