A people counting system and method for the automatic reconfiguration of a failed people counting sensor device in a people counting system. The system includes a plurality of addressable people counting sensor devices defining a cluster having a master device in communication with at least one slave device, each of the master device and the slave devices having a corresponding Media Access Control ("MAC") address. The master device is adapted to sequentially transmit power-on commands to each of the slave devices, assign a different node address to each of the slave devices, receive an association of the MAC address of the master device to the node address and MAC address of each of the slave devices to form a cluster configuration, store the cluster configuration as a cluster configuration table, and replicate the cluster configuration table to the slave devices. A dynamic host configuration protocol (DHCP) server assigns an IP public address to the master device.