Setting up an Apache Proxy with Authentication

I need to set up a proxy with authentication to verify the behavior of an application that connects to the internet.

I am trying to set-up an Apache installation with forward proxy and authentication, and even though I am close to make it work, I wonder if there is maybe a better way, as the configuration is fairly esoteric.

How can Apache be configured to work this way?

Is there any other good option that is already configured? Maybe some VM or some other software tool, instead of Apache?

Solution

For the record, this is how I set up apache to be used as a forward-proxy with basic authentication:

Open http.conf

Uncomment the following LoadModule directives to enable proxy functionality

LoadModule proxy_module modules/mod_proxy.so
LoadModule proxy_http_module modules/mod_proxy_http.so

Add the following directives to the http.conf to enable authentication

ProxyRequests On
ProxyVia On

<Proxy *>
    Order deny,allow
    Allow from all
    AuthType Basic
    AuthName "Password Required"
    AuthUserFile password.file
    AuthGroupFile group.file
    Require group usergroup
</Proxy>

Create a password.file using the htpasswd.exe utility. Place it on the Apache Root directory

htpasswd.exe -c password.file username

Create a group.file using a text editor at the same level as the password.file with the following contents

usergroup: username

Then run apachectl restart to pick up the configuration changes.