Proxy ARP on the NSX-T edge node is a feature supported since NSX-T 2.4.
Proxy ARP is automatically enabled when a NAT rule or a load balancer VIP uses an IP address from the subnet of the Tier-0 gateway uplink.
Proxy ARP can be considered in environments where IP subnets are limited and where it is problematic to use new subnets easily and rapidly (either by using static routes or BGP).
For production environment, VMware recommends implementing proper routing between a physical fabric and the NSX-T Tier-0 by using either static routes or Border Gateway Protocol with BFD. If proper routing is used between the Tier-0 gateway and the physical fabric, BFD with its sub-second timers will converge faster.
The following table summarizes the design option and support for the Proxy ARP feature on the NSX-T Edge:
|NSX-T Proxy ARP Support|
|Tier-0 High Availability Mode||Support|
|Active / Standby||Supported|
|Active / Active||Not supported|
For more details regarding Proxy-ARP on NSX-T please refer to the document below
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