In an application I am making I need to have two devices who can communicate with each other over WiFi. I am aware that this will involve getting the IP address of the devices. I was wondering if there was a way to do this? I have looked into discovery protocols but there doesnt appear to be much on Android and I really dont know where to start with this.

Any help is much appreciated as I really am lost atm,

Cheers.

You should be able to use one as server and the other one as client yes, question is if you can hook a system manager or something on the server one but the connection it self should at least be possible but I think it would require root access.
WiFi Tether does this, meaning it acts as a AP with DHCP.