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How can I configure a router to limit a computer to local network and block its incoming or outgoing WAN access? What kind of settings I should look into?

I am using Tomato firmware.

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This is normally done with Vlans - you can include vlan in the access list and prevent it from using NAT translation. This would be best solution but I dont know if this is possible on Tomato. Im pretty sure though that there is an IPtables [] which could be treated as light weight firewall - you can setup a rule to drop packets based on source and destination. – mnmnc Dec 23 '12 at 1:31

Check the Parental Controls.

I'm not familiar with Tomato settings but many firmwares will let you control and/or meter the internet access using parental controls.

You should be able use the machines IP or MAC address to restrict its access.

I can block access completely or allow it on a schedule with my Asus router.

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A simpler way is to use the Access Restriction menu, make a rule for specific Ethernet interface with disabled internet access.

Here's a video tutorial

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