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What is IP address “overlapping” within the context of NAT ?

IP address overlapping refers to a situation where two locations that want to interconnect are both using the same IP address scheme. This is not an unusual occurrence; it often happens when companies merge or are acquired. Without special support, the two locations will not be able to connect and establish sessions. The overlapped IP address can be a public address assigned to another company, a private address assigned to another company, or can come from the range of private addresses as defined in RFC 1918. Private IP addresses are unroutable and require NAT translations to allow connections to the outside world. The solution involves intercepting Domain Name System (DNS) name-query responses from the outside to the inside, setting up a translation for the outside address, and fixing up the DNS response before forwarding it to the inside host. A DNS server is required to be involved on both sides of the NAT device to resolve users
wanting to have connection between both networks. NAT is able to inspect and perform address translation on the contents of DNS “A” and “PTR” records, as shown in Using NAT in Overlapping Networks.

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