Setup Squid Forward Proxy with Basic authentication

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On Debian/Ubuntu and related distros:

sudo apt-get install squid3
sudo vim /etc/squid3/squid.conf

On RHEL/CentOS/Fedora and related distros:

sudo yum install squid
sudo vim /etc/squid/squid.conf

Add the following lines to squid.conf:

#If you would like Squid to listen to a port other than its default port 3128, add the port no below
http_port 12121

#To disable authentication, fill in your network details and un-comment the lines below
#acl our_networks src 10.1.1.0/24
#http_access allow our_networks

visible_hostname proxy.yourcompany.local

acl require_pass proxy_auth REQUIRED
http_access allow require_pass

auth_param basic program /usr/lib/squid/ncsa_auth /etc/squid/passwd
auth_param basic children 5
auth_param basic realm Squid proxy-caching web server
auth_param basic credentialsttl 2 hours
auth_param basic casesensitive off

The passwd file, storing your username/password details must noe be created: htpasswd -c /etc/squid/passwd username

Finally start Squid:
Debian/Ubuntu and related distros: sudo /etc/init.d/squid3 start
RHEL/CentOS/Fedora and related distros: sudo /etc/init.d/squid start

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