jndi.properties in JBoss

Is there any way to configure JNDI so the lookup first checks localhost and if it doesn't find matching name it performs automatic discovery of other jndi servers?

My understanding of the documentation is that this is the default behavior when using clustering:

16.2.2. Client configuration

The JNDI client needs to be aware of the HA-JNDI cluster. You can pass a list of JNDI servers (i.e., the nodes in the HA-JNDI cluster) to the java.naming.provider.url JNDI setting in the jndi.properties file. Each server node is identified by its IP address and the JNDI port number. The server nodes are separated by commas (see Section 16.2.3, “JBoss configuration” on how to configure the servers and ports).
java.naming.provider.url=server1:1100,server2:1100,server3:1100,server4:1100
When initialising, the JNP client code will try to get in touch with each server node from the list, one after the other, stopping as soon as one server has been reached. It will then download the HA-JNDI stub from this node.

Note - There is no load balancing behavior in the JNP client lookup process. It just goes through the provider list and use the first available server. The HA-JNDI provider list only needs to contain a subset of HA-JNDI nodes in the cluster.

The downloaded smart stub contains the logic to fail-over to another node if necessary and the updated list of currently running nodes. Furthermore, each time a JNDI invocation is made to the server, the list of targets in the stub interceptor is updated (only if the list has changed since the last call).

If the property string java.naming.provider.url is empty or if all servers it mentions are not reachable, the JNP client will try to discover a bootstrap HA-JNDI server through a multicast call on the network (auto-discovery). See Section 16.2.3, “JBoss configuration” on how to configure auto-discovery on the JNDI server nodes. Through auto-discovery, the client might be able to get a valid HA-JNDI server node without any configuration. Of course, for the auto-discovery to work, the client must reside in the same LAN as the server cluster (e.g., the web servlets using the EJB servers). The LAN or WAN must also be configured to propagate such multicast datagrams.