A domain configuration system and method operable in an Ethernet OAM network having multiple levels of OAM domains. A port of a first end bridge of the network is configured as a first MEP node belonging to a predetermined OAM domain having a particular level. GARP or CC frames are transmitted from the first MEP node in a forward attribute registration process towards the remaining bridges of the network. A port of a second end bridge of the network is configured as a second MEP node of the predetermined OAM domain. In a backward attribute registration process, GARP or CC frames are transmitted from the second MEP node towards the remaining bridges of the network. Responsive to the frame flow, ports in bridges disposed between the first and second end bridges are automatically configured as MIP nodes having the particular level.