Most OpenWrt supported wireless drivers on Kernel 2.6 support AP-to-Sta WDS to connect two or more devices wirelessly to form one common broadcast domain. WEP and WPA-PSK or WPA2-PSK encryption is possible.

Relevant configuration files:

• /etc/config/wireless
• /etc/config/firewall
• /etc/config/dhcp

One WDS Access Point can server multiple WDS Stations.

• On the Access Point, add option wds 1 to the existing wifi-iface section and proceed with configuring SSID, channel, encryption etc.
• On the Client, set option mode to sta and add option wds 1 to the wifi-iface section. Disable the DHCP server.

To have an AP to AP WDS simply set an ap on the client in addition to the sta (with the same ssid and key, or not).

On MAC80211 OpenWRT use 4 address (option wds 1) (with ap or sta mode) and not repeater mode. See also http://linuxwireless.org/en/users/Documentation/iw#Setting_up_a_WDS_peer