- A
Create the peering now and add a route table to one VNet later.
Why wrong: Peering cannot be established successfully between VNets with overlapping address spaces, even if routes are added later.
- B
Renumber one VNet so its address space no longer overlaps before creating the peering.
Azure VNet peering requires non-overlapping address spaces. The administrator must change one network to a unique prefix before attempting the peering. Route tables, NSGs, and DNS settings do not solve the fundamental address conflict.
- C
Add an NSG rule that allows traffic between the two address ranges.
Why wrong: Network security groups control traffic filtering, but they do not resolve overlapping IP ranges or enable peering.
- D
Enable gateway transit on both VNets so overlapping ranges can route through a shared gateway.
Why wrong: Gateway transit does not permit overlapping address spaces. The VNets still must be uniquely addressed before peering.
Quick Answer
The correct first step is to renumber one VNet so its address space no longer overlaps before creating the peering. This is required because Azure VNet peering mandates that peered virtual networks use non-overlapping address spaces; VNet-A’s 10.40.0.0/16 fully contains VNet-B’s 10.40.128.0/17, making the peering creation fail with an overlapping address spaces error. On the AZ-104 exam, this scenario tests your understanding that peering is a Layer 3 connection with no built-in NAT or address translation, so the overlapping ranges cannot be routed. A common trap is assuming that a smaller subnet within a larger one is acceptable, but Azure checks the entire CIDR block, not just individual subnets. Remember the memory tip: “Peering requires no overlap—if one range is inside the other, renumber the smaller or the larger.”
AZ-104 Implement and Manage Virtual Networking Practice Question
This AZ-104 practice question tests your understanding of implement and manage virtual networking. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Two application teams created separate VNets for independent workloads. VNet-A uses 10.40.0.0/16 and VNet-B uses 10.40.128.0/17. The teams want to peer the VNets so both apps can communicate privately. What should the administrator do first?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"first"Why it matters: Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
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
Renumber one VNet so its address space no longer overlaps before creating the peering.
B is correct because Azure VNet peering requires non-overlapping address spaces. VNet-A (10.40.0.0/16) and VNet-B (10.40.128.0/17) overlap, as 10.40.128.0/17 is a subset of 10.40.0.0/16. Before peering can be established, one VNet must be renumbered to eliminate the overlap; otherwise, the peering creation will fail with an error indicating overlapping address spaces.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Create the peering now and add a route table to one VNet later.
Why it's wrong here
Peering cannot be established successfully between VNets with overlapping address spaces, even if routes are added later.
- ✓
Renumber one VNet so its address space no longer overlaps before creating the peering.
Why this is correct
Azure VNet peering requires non-overlapping address spaces. The administrator must change one network to a unique prefix before attempting the peering. Route tables, NSGs, and DNS settings do not solve the fundamental address conflict.
Clue confirmation
The clue word "first" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Add an NSG rule that allows traffic between the two address ranges.
Why it's wrong here
Network security groups control traffic filtering, but they do not resolve overlapping IP ranges or enable peering.
- ✗
Enable gateway transit on both VNets so overlapping ranges can route through a shared gateway.
Why it's wrong here
Gateway transit does not permit overlapping address spaces. The VNets still must be uniquely addressed before peering.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates assume overlapping ranges can be handled with routing or filtering (NSGs, route tables, or gateways), but Azure VNet peering strictly requires non-overlapping address spaces and will reject the peering creation outright.
Detailed technical explanation
How to think about this question
Azure VNet peering uses a flat routing model where each VNet's address space is directly routable to the other. When address spaces overlap, Azure cannot disambiguate which VNet owns a given IP, leading to routing conflicts. The overlap must be resolved by renumbering one VNet (e.g., changing VNet-B to 10.41.0.0/17) before peering; this is a hard requirement enforced at the Azure Resource Manager layer during peering creation.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A healthcare organisation deploys an application with a public-facing web tier and a private database tier. The database subnet has no public IP and only accepts connections from the web tier's security group. Questions like this test whether you can design cloud network isolation using VNets/VPCs, subnets, and security group rules.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this AZ-104 question test?
Implement and Manage Virtual Networking — This question tests Implement and Manage Virtual Networking — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Renumber one VNet so its address space no longer overlaps before creating the peering. — B is correct because Azure VNet peering requires non-overlapping address spaces. VNet-A (10.40.0.0/16) and VNet-B (10.40.128.0/17) overlap, as 10.40.128.0/17 is a subset of 10.40.0.0/16. Before peering can be established, one VNet must be renumbered to eliminate the overlap; otherwise, the peering creation will fail with an error indicating overlapping address spaces.
What should I do if I get this AZ-104 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Are there clue words in this question I should notice?
Yes — watch for: "first". Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Same concept, more angles
1 more ways this is tested on AZ-104
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Two application teams created separate virtual networks so their workloads can communicate through VNet peering. VNet-A uses 10.20.0.0/16. VNet-B was created with 10.20.128.0/17. The peering request fails during validation. What is the best fix?
easy- A.Add an NSG rule to allow traffic between the two VNets.
- ✓ B.Change one VNet to use a non-overlapping address space.
- C.Create a private endpoint in each VNet.
- D.Attach a route table to both subnets.
Why B: VNet peering requires that the address spaces of the peered virtual networks do not overlap. VNet-A uses 10.20.0.0/16, which includes the entire range from 10.20.0.0 to 10.20.255.255. VNet-B uses 10.20.128.0/17, which is a subset of VNet-A's range (10.20.128.0 to 10.20.255.255). This overlap causes the peering validation to fail because Azure cannot route traffic between overlapping address spaces. Changing one VNet to a non-overlapping address space resolves the conflict.
Last reviewed: Jun 11, 2026
This AZ-104 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AZ-104 exam.
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