My Squid HTTP proxy works fine with authentication. Here is the config:
auth_param basic program /usr/lib/squid/pam_auth
auth_param basic children 5
auth_param basic realm test-proxy
auth_param basic credentialsttl 4 hours
auth_param basic casesensitive off
But I want that my locally running applications which use the proxy don't have to authenticate. How to disable authentication for requests from localhost?