- 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.
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.
When this WOULD be correct
If the VNets had non-overlapping address spaces but needed to force asymmetric routing or override default peering routes, creating the peering first and adding a route table later would be correct.
- ✓
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.
When this WOULD be correct
In a scenario where two VNets have non-overlapping address spaces and you need to control which traffic is allowed between them after peering, adding an NSG rule would be the correct step.
- ✗
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.
When this WOULD be correct
In a scenario where two VNets have non-overlapping address spaces but need to connect to an on-premises network through a single VPN gateway, enabling gateway transit on one VNet and using the other as a spoke allows the spoke VNet to use the hub's gateway without deploying its own.
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.
✓Renumber one VNet so its address space no longer overlaps before creating the peering.Correct answer▾
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.
✗Create the peering now and add a route table to one VNet later.Wrong answer — click to see why▾
Why this is wrong here
VNet peering requires non-overlapping address spaces. Creating the peering first with overlapping ranges will fail, and adding a route table later cannot resolve the fundamental address conflict.
★ When this WOULD be the correct answer
If the VNets had non-overlapping address spaces but needed to force asymmetric routing or override default peering routes, creating the peering first and adding a route table later would be correct.
Why candidates choose this
Candidates may think peering can be established first and routing adjusted later, underestimating that Azure blocks peering creation when address spaces overlap.
✗Add an NSG rule that allows traffic between the two address ranges.Wrong answer — click to see why▾
Why this is wrong here
VNet peering requires non-overlapping address spaces; NSG rules cannot resolve the fundamental routing conflict caused by overlapping IP ranges.
★ When this WOULD be the correct answer
In a scenario where two VNets have non-overlapping address spaces and you need to control which traffic is allowed between them after peering, adding an NSG rule would be the correct step.
Why candidates choose this
Candidates may mistakenly think that NSGs can filter traffic between overlapping ranges, not realizing that overlapping IPs prevent routing from working at all.
✗Enable gateway transit on both VNets so overlapping ranges can route through a shared gateway.Wrong answer — click to see why▾
Why this is wrong here
VNet-A (10.40.0.0/16) and VNet-B (10.40.128.0/17) have overlapping address ranges (10.40.128.0/17 is within 10.40.0.0/16). Azure VNet peering requires non-overlapping address spaces; overlapping ranges cannot communicate via peering even with a shared gateway. Gateway transit does not resolve address overlap.
★ When this WOULD be the correct answer
In a scenario where two VNets have non-overlapping address spaces but need to connect to an on-premises network through a single VPN gateway, enabling gateway transit on one VNet and using the other as a spoke allows the spoke VNet to use the hub's gateway without deploying its own.
Why candidates choose this
Candidates may mistakenly think that a shared gateway can route traffic between overlapping VNets, similar to how a VPN gateway can connect overlapping on-premises networks with NAT, but Azure VNet peering does not support overlapping ranges.
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?”
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.
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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 →
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Last reviewed: Jun 11, 2026
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