5. Creating and Managing vApps : 5.4 vApp Deployment Readiness : 5.4.1 vApp Design Considerations : 5.4.1.7. Fenced – Dynamically or Manually Created
   
5.4.1.7. Fenced – Dynamically or Manually Created
In vCloud Director, a network type is fenced when the virtual machines in the vApp share the same Layer 2 network as their organization network. This is a special case of a NAT-routed network in which the inside and outside address of the Edge device are on the same Layer 2 network. In this mode the Edge device provides proxy ARP services to the virtual machines in the vApp.
From a vApp network perspective, depending on the type of connected organization network, a NAT or double NAT might occur for incoming or outgoing traffic. The following scenarios describe a double and single NAT situation.