NFS breaks after switching to DNS

["Beiad Ian Q. Dalton" <idalton@ferret.ddns.org>]

I just switched my private network from /etc/hosts to DNS, 
now NFS mounting doesn't work.

Using /etc/hosts I see in syslog:
Jan 31 18:06:52 playdough mountd[211]: NFS mount of / attempted from 192.168.1.1
Jan 31 18:06:52 playdough mountd[211]: / has been mounted by 192.168.1.1

and using DNS for the same mount I see:
Jan 31 18:09:30 playdough mountd[211]: NFS mount of / attempted from 192.168.1.1
Jan 31 18:09:30 playdough mountd[211]: Unauthorized access by NFS client 192.168.1.1.
Jan 31 18:09:30 playdough mountd[211]: Blocked attempt of 192.168.1.1 to mount /

Is it possible mountd is completely ignoring DNS? How could I check?