Vnet1 and Vnet2 overlap therefor the Vnet3 & Vnet4 is correct and should be able to peer together | Name | Address space | Subnet | Resource group | Azure region | | VNet1 | 10.11.0.0/16 | 10.11.0.0/17 | | West US | | VNet2 | 10.11.0.0/17 | 10.11.0.0/25 | | West US | | VNet3 | 10.10.0.0/22 | 10.10.1.0/24 | | East US | | VNet4 | 192.168.16.0/22 | 192.168.16.0/24 | | North Europe |