dnscache.sls:

dnscache_listen:
  file.managed:
    - name: /etc/dnscache/env/IP
    - text: {{ pillar['djbdns']['dnscache']['listen'] }}
    - watch_in:
      dnscache
{% for client in pillar['djbdns']['dnscache']['clients'] -%}
dnscache_{{ client | replace(".", "_") }}_client:
  file.managed:
    - name: /etc/dnscache/root/ip/{{ client }}
    - text: ''
    - watch_in:
      dnscache
{% endfor %}

error:
[CRITICAL] Rendering SLS "base:djbdns.dnscache" failed: Unknown yaml render error; line 12

---
[...]
  file.managed:
    - name: /etc/dnscache/env/IP
    - text: 10.0.0.1
    - watch_in:
      dnscache
dnscache_10_0_0_client:    <======================
  file.managed:
    - name: /etc/dnscache/root/ip/10.0.0
    - text: ''
    - watch_in:
      dnscache
[...]
---
local:
    Data failed to compile:
----------
    Rendering SLS "base:djbdns.dnscache" failed: Unknown yaml render error; line 12

---
[...]
  file.managed:
    - name: /etc/dnscache/env/IP
    - text: 10.0.0.1
    - watch_in:
      dnscache
dnscache_10_0_0_client:    <======================
  file.managed:
    - name: /etc/dnscache/root/ip/10.0.0
    - text: ''
    - watch_in:
      dnscache
[...]