iptables

-A INPUT -p udp -m state --state NEW --dport 53 -j ACCEPT 
-A INPUT -p tcp -m state --state NEW --dport 53 -j ACCEPT

named.conf

options {
    listen-on port 53 { 127.0.0.1; 10.1.0.254};
    listen-on-v6 port 53 { ::1; };
    directory	"/var/named";
    dump-file	"/var/named/data/cache_dump.db";
    statistics-file "/var/named/data/named_stats.txt";
    memstatistics-file "/var/named/data/named_mem_stats.txt";
    allow-query { any; };
    recursion no;

    dnssec-enable yes;
    dnssec-validation yes;
    dnssec-lookaside auto;

    /* Path to ISC DLV key */
    bindkeys-file "/etc/named.iscdlv.key";

    managed-keys-directory "/var/named/dynamic";
};
zone "vlt.local" IN {
    type master;
    file "vlt.local.zone";
    allow-update { none; };
};

vlt.local.zone

$TTL 86400
@   IN  SOA     ns1.vlt.local. root.vlt.local. (
        2013042201  ;Serial
        3600        ;Refresh
        1800        ;Retry
        604800      ;Expire
        86400       ;Minimum TTL
)
; Specify our two nameservers
		IN	NS		ns1.mydomain.com.
; Resolve nameserver hostnames to IP, replace with your two droplet IP addresses.
ns1		IN	A		10.1.0.254

; Define hostname -> IP pairs which you wish to resolve
@		IN	A	    10.1.0.16	
www		IN	A	    10.1.0.16