- A
Create a route table on both VNets and point the overlapping prefixes to a virtual appliance.
Why wrong: Route tables do not resolve overlapping address spaces required for peering to succeed.
- B
Renumber one VNet to a non-overlapping address range before creating the peering.
Peering requires non-overlapping CIDR ranges, so one network must be redesigned first.
- C
Enable gateway transit on both VNets so overlapping ranges can be routed around.
Why wrong: Gateway transit helps with shared gateways, but it does not allow overlapping spaces.
- D
Create a private endpoint in each VNet for the applications that need access.
Why wrong: Private endpoints connect to services, not to general VNet-to-VNet peering requirements.
Question 659 of 1,170
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.
A company merged with another business, and two Azure virtual networks need to be peered for shared application access. One VNet uses 10.20.0.0/16 and the other uses 10.20.128.0/17. The administrator must make the peering work with minimal operational complexity. What should be done 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 to a non-overlapping address range before creating the peering.
Azure VNet peering requires non-overlapping address spaces. The two VNets (10.20.0.0/16 and 10.20.128.0/17) overlap because 10.20.128.0/17 is a subset of 10.20.0.0/16. Peering will fail with an error about overlapping address ranges. Renumbering one VNet to a non-overlapping range (e.g., 10.21.0.0/16) is the only way to satisfy the prerequisite for peering with minimal operational complexity.
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 a route table on both VNets and point the overlapping prefixes to a virtual appliance.
Why it's wrong here
Route tables do not resolve overlapping address spaces required for peering to succeed.
When this WOULD be correct
In a scenario where two VNets have overlapping address spaces but must communicate without renumbering, and a network virtual appliance (NVA) is used for traffic forwarding. Creating route tables to direct overlapping traffic to the NVA would be correct, assuming the NVA performs NAT or routing.
- ✓
Renumber one VNet to a non-overlapping address range before creating the peering.
Why this is correct
Peering requires non-overlapping CIDR ranges, so one network must be redesigned first.
Clue confirmation
The clue word "first" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Enable gateway transit on both VNets so overlapping ranges can be routed around.
Why it's wrong here
Gateway transit helps with shared gateways, but it does not allow overlapping spaces.
- ✗
Create a private endpoint in each VNet for the applications that need access.
Why it's wrong here
Private endpoints connect to services, not to general VNet-to-VNet peering requirements.
When this WOULD be correct
This option would be correct in a scenario where two VNets need to securely access a shared Azure PaaS service (e.g., Azure SQL Database) without exposing it to the public internet, and the VNets have non-overlapping address ranges. The question would ask for a solution to enable private connectivity to the service from both VNets.
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 to a non-overlapping address range before creating the peering.Correct answer▾
Why this is correct
Peering requires non-overlapping CIDR ranges, so one network must be redesigned first.
✗Create a route table on both VNets and point the overlapping prefixes to a virtual appliance.Wrong answer — click to see why▾
Why this is wrong here
Azure VNet peering requires non-overlapping address spaces. Overlapping ranges (10.20.0.0/16 and 10.20.128.0/17) cannot be directly peered; route tables cannot resolve the conflict because Azure peering does not support overlapping prefixes.
★ When this WOULD be the correct answer
In a scenario where two VNets have overlapping address spaces but must communicate without renumbering, and a network virtual appliance (NVA) is used for traffic forwarding. Creating route tables to direct overlapping traffic to the NVA would be correct, assuming the NVA performs NAT or routing.
Why candidates choose this
Candidates may think route tables can override peering limitations, or they confuse VNet peering with hub-and-spoke topologies where NVAs handle overlapping ranges.
✗Enable gateway transit on both VNets so overlapping ranges can be routed around.Wrong answer — click to see why▾
Why this is wrong here
Gateway transit does not resolve overlapping IP address ranges; it only allows one VNet to use the other's VPN gateway for connectivity to on-premises networks. Overlapping ranges prevent peering from being established at all.
★ When this WOULD be the correct answer
If the VNets had non-overlapping address ranges and the goal was to enable a hub VNet to provide VPN connectivity to on-premises for a spoke VNet, enabling gateway transit on the hub and using it in the spoke would be correct.
Why candidates choose this
Candidates may confuse gateway transit with a feature that can route around overlapping addresses, or think that enabling transit allows traffic to bypass the overlap via a gateway.
✗Create a private endpoint in each VNet for the applications that need access.Wrong answer — click to see why▾
Why this is wrong here
Private endpoints provide secure access to Azure PaaS services from a VNet, but they do not resolve IP address overlap between two VNets. Peering requires non-overlapping address spaces, and private endpoints cannot route traffic between overlapping ranges.
★ When this WOULD be the correct answer
This option would be correct in a scenario where two VNets need to securely access a shared Azure PaaS service (e.g., Azure SQL Database) without exposing it to the public internet, and the VNets have non-overlapping address ranges. The question would ask for a solution to enable private connectivity to the service from both VNets.
Why candidates choose this
Candidates may think private endpoints can isolate traffic and solve routing issues, or they confuse private endpoints with VNet peering as a method to connect VNets with overlapping addresses.
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 network virtual appliances, but Azure VNet peering has a hard requirement for non-overlapping address spaces at creation time, and no post-peering configuration can override this.
Detailed technical explanation
How to think about this question
Azure VNet peering uses the underlying Azure backbone to route traffic between VNets, and the Azure Resource Manager enforces a strict check that no address ranges overlap before allowing the peering link to be created. Overlapping ranges cause routing ambiguity because Azure cannot determine which VNet should own a given IP address. In a real-world scenario, renumbering a VNet requires careful planning—you must update all dependent resources (NICs, NSGs, route tables, DNS) and may need to use Azure Resource Mover or redeploy workloads, which is why the question emphasizes 'minimal operational complexity' by doing it first.
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 company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
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 to a non-overlapping address range before creating the peering. — Azure VNet peering requires non-overlapping address spaces. The two VNets (10.20.0.0/16 and 10.20.128.0/17) overlap because 10.20.128.0/17 is a subset of 10.20.0.0/16. Peering will fail with an error about overlapping address ranges. Renumbering one VNet to a non-overlapping range (e.g., 10.21.0.0/16) is the only way to satisfy the prerequisite for peering with minimal operational complexity.
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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