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Question 441 of 1,049
Implement and Manage Virtual NetworkingmediumMultiple ChoiceObjective-mapped

AZ-104 Implement and Manage Virtual Networking Practice Question

A company wants to peer a new spoke virtual network to an existing hub VNet. The hub uses 10.40.0.0/16, and the new spoke was created with 10.40.128.0/17 because that range seemed available in the branch office plan. Peering creation fails. What should the administrator do?

⚠ Common exam trap

Many candidates assume a subnet range like 10.40.128.0/17 is 'available' because it is not used by the hub’s subnets, but Azure VNet peering checks the entire VNet address space, not just the subnets, so any overlap at the VNet level causes failure.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Change the spoke VNet to a non-overlapping address space before peering.

VNet peering requires that the address spaces of the peered virtual networks do not overlap. The hub uses 10.40.0.0/16, and the spoke uses 10.40.128.0/17, which is a subset of the hub’s range. Azure blocks peering when there is any overlap to prevent routing conflicts. The correct fix is to change the spoke VNet to a non-overlapping address space, such as a different RFC 1918 range like 10.1.0.0/16, before attempting to peer.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Add a second address prefix to the spoke VNet and keep the overlapping range.

    Why it's wrong here

    Adding a second address prefix to the spoke VNet does nothing to eliminate the original overlapping range; the hub's conflicting prefix still exists in the spoke's address space. Azure allows adding non-overlapping prefixes, but the existing overlap remains a hard failure for peering. You must first delete the overlapping address space (after ensuring no subnets use it) and then add a new non-overlapping prefix. Alternatively, you could redesign the hub's address space, but the spoke's overlapping prefix cannot coexist in the peering relationship.

    When this WOULD be correct

    This option would be correct if the spoke VNet had no address space overlap but needed to communicate with an additional on-premises network that uses an overlapping range. Adding a second prefix to the spoke VNet and configuring appropriate routes could enable connectivity without changing the original range.

  • Change the spoke VNet to a non-overlapping address space before peering.

    Why this is correct

    VNet peering enforces a hard constraint: the address spaces of peered VNets must not overlap, because overlapping ranges make IP traffic semantically ambiguous at L3. To fix the spoke, you must remove the conflicting prefix from its address space before adding a non-overlapping one. Ensure no existing subnets or resources are deployed in the overlapping range, since you cannot delete an address space that is currently in use. Only then can the hub-spoke peering establish successfully.

  • Enable gateway transit on the hub VNet before retrying peering.

    Why it's wrong here

    Enabling gateway transit on the hub will not satisfy peering's requirement for disjoint address spaces. Gateway transit, when enabled, lets a spoke inherit the hub's VPN/ExpressRoute gateway for outbound traffic, but it only configures route propagation for those gateway routes; it does not alter the spoke's address space. Overlapping address space prevents the peering link itself from being created, so the peering resource never exists to take advantage of gateway transit. You must resolve the CIDR conflict before any hub-spoke routing, including gateway transit, can occur.

    When this WOULD be correct

    If the question stated that the hub has a VPN gateway and the spoke needs internet access through the hub, enabling gateway transit on the hub and using the spoke as a gateway spoke would be correct. The spoke would then route traffic via the hub's gateway.

  • Create custom DNS records for the spoke VNet so the address ranges no longer conflict.

    Why it's wrong here

    Custom DNS records only map hostnames to IP addresses and have no effect on IP prefix overlap, which is what peering validation checks. The peering operation examines each VNet's address spaces for CIDR collisions using Azure's network resource provider, not DNS resolution. Even if the DNS server resolved names to entirely different addresses, the actual VNet address space still contains the conflicting prefix, so the peering attempt will fail at provisioning time.

    When this WOULD be correct

    In a scenario where VNet peering succeeds but resources in the spoke cannot resolve names in the hub (or vice versa), and custom DNS servers are needed. For example, when using Azure-provided DNS and you need to resolve private IPs across peered VNets without Azure DNS resolution.

Option-by-option analysis

Why each answer is right or wrong

Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The AZ-104 exam frequently reuses these exact scenarios with slightly different constraints.

Change the spoke VNet to a non-overlapping address space before peering.Correct answer

Why this is correct

VNet peering enforces a hard constraint: the address spaces of peered VNets must not overlap, because overlapping ranges make IP traffic semantically ambiguous at L3. To fix the spoke, you must remove the conflicting prefix from its address space before adding a non-overlapping one. Ensure no existing subnets or resources are deployed in the overlapping range, since you cannot delete an address space that is currently in use. Only then can the hub-spoke peering establish successfully.

Add a second address prefix to the spoke VNet and keep the overlapping range.Wrong answer — click to see why

Why this is wrong here

Azure VNet peering requires non-overlapping address spaces. Adding a second prefix to the spoke VNet does not resolve the existing overlap with the hub's 10.40.0.0/16, and the overlapping range (10.40.128.0/17) remains, causing peering to fail.

★ When this WOULD be the correct answer

This option would be correct if the spoke VNet had no address space overlap but needed to communicate with an additional on-premises network that uses an overlapping range. Adding a second prefix to the spoke VNet and configuring appropriate routes could enable connectivity without changing the original range.

Why candidates choose this

Candidates may think they can work around the overlap by adding more address space, misunderstanding that peering strictly prohibits any overlap between the peered VNets' address spaces.

Enable gateway transit on the hub VNet before retrying peering.Wrong answer — click to see why

Why this is wrong here

Gateway transit enables a spoke to use the hub's VPN/ExpressRoute gateway, but it does not resolve IP address overlap. Peering fails due to conflicting address spaces (10.40.0.0/16 and 10.40.128.0/17), not gateway configuration.

★ When this WOULD be the correct answer

If the question stated that the hub has a VPN gateway and the spoke needs internet access through the hub, enabling gateway transit on the hub and using the spoke as a gateway spoke would be correct. The spoke would then route traffic via the hub's gateway.

Why candidates choose this

Candidates may confuse peering prerequisites with gateway transit requirements, thinking that enabling transit is necessary for any peering to succeed, or they may misattribute the failure to missing gateway settings rather than address overlap.

Create custom DNS records for the spoke VNet so the address ranges no longer conflict.Wrong answer — click to see why

Why this is wrong here

Peering fails due to overlapping address spaces (10.40.0.0/16 and 10.40.128.0/17), not DNS resolution. DNS records do not resolve IP address conflicts; Azure VNet peering requires non-overlapping address spaces.

★ When this WOULD be the correct answer

In a scenario where VNet peering succeeds but resources in the spoke cannot resolve names in the hub (or vice versa), and custom DNS servers are needed. For example, when using Azure-provided DNS and you need to resolve private IPs across peered VNets without Azure DNS resolution.

Why candidates choose this

Candidates may confuse IP address overlap with name resolution issues, thinking that custom DNS records can somehow 'hide' or work around the overlapping ranges, or they misunderstand that DNS is separate from network addressing.

Analysis generated from the official AZ-104blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”

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Last reviewed: Jun 11, 2026

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