IP addresses may be allocated to devices in an industrial control system by applying starting address information in combination with each device's relative position in a local network. The starting address information, which may include an IP subnet address, gateway address, subnet mask, subnet size, and/or local network group identifier, may be provided to a first positioned, or “initiator,” device in a local network. The initiator device may determine its IP address by applying the starting address information and knowledge of being the first positioned device. The initiator device may send the position information and at least a portion of the starting address information to a next device, which may determine its relative position based on the received position information, and which may apply its relative position with the portion of the starting address information to determine its IP address. This process may continue sequentially for each device.