This document provides instructions for setting up a transparent caching HTTP proxy server using Linux and Squid. It discusses configuring the Linux kernel to enable transparent proxying features. It then covers installing and configuring Squid to be aware of transparent proxying. The document explains how to set up iptables rules to redirect HTTP traffic to the Squid proxy. It also discusses options for configuring a transparent proxy when the proxy software is on a remote machine rather than the local system.