A VPC peering connection is a networking connection between two VPCs that lets you route traffic between them privately.
Benefits of VPC peering
A VPC peering connection is highly available. This is because it is neither a gateway nor a VPN connection and does not rely on a separate piece of physical hardware. There is no bandwidth bottleneck or single point of failure for communication. A VPC peering connection helps to facilitate the transfer of data.
You can establish peering relationships between VPCs across different AWS Regions. This is called inter-Region VPC peering. It permits VPC resources that run in different AWS Regions to communicate securely with each other. Examples of these resources include EC2 instances, Amazon Relational Database Service (Amazon RDS) databases, and AWS Lambda functions. This communication is accomplished using private IP addresses, without requiring gateways, VPN connections, or separate network appliances. All inter-Region traffic is encrypted with no single point of failure or bandwidth bottleneck. Traffic always stays on the global AWS backbone and never traverses the public internet, which reduces threats such as common exploits and distributed denial of service (DDoS) attacks. Inter-Region VPC peering provides an uncomplicated and cost-effective way to share resources between Regions or replicate data for geographic redundancy.
You can also create a VPC connection between VPCs in different AWS accounts.
why you would set up a VPC peering connection
Full sharing of resources between all VPCs
Your organization has company services distributed across four VPCs and a single VPC dedicated to centralized IT services and logging. To facilitate data sharing, the IT department constructed a fully mesh network design using VPC peering to connect each VPC to every other VPC in the organization.
Each VPC must have a one-to-one connection with each VPC it is approved to communicate with. This is because each VPC peering connection is nontransitive in nature and does not allow network traffic to pass from one peering connection to another.
For example, VPC 1 is peered with VPC 2, and VPC 2 is peered with VPC 4. You cannot route packets from VPC 1 to VPC 4 through VPC 2. To route packets directly between VPC 1 and VPC 4, you can create a separate VPC peering connection between them.

Partial sharing of centralized resources
Your organization’s IT department maintains a central VPC for file sharing. Multiple VPCs require access to this resource but do not need to send traffic to each other. A peering connection is established to connect the VPCs solely to this resource.

Non-valid peering configurations
Overlapping CIDR blocks
You cannot create a VPC peering connection between VPCs with matching or overlapping IPv4 Classless Inter-Domain Routing (CIDR) blocks. This limitation also applies to VPCs that have nonoverlapping IPv6 CIDR blocks. You cannot create a VPC peering connection if the VPCs have matching or overlapping IPv4 CIDR blocks. This applies even if you intend to use the VPC peering connection for IPv6 communication only.
Transitive peering
You have a VPC peering connection between VPC A and VPC B, and between VPC A and VPC C. There is no VPC peering connection between VPC B and VPC C. You cannot route packets directly from VPC B to VPC C through VPC A.
Edge-to-edge routing through a gateway or private connection
If either VPC in a peering relationship has one of the following connections, you cannot extend the peering relationship to that connection:
- A VPN connection or a Direct Connect connection to a corporate network
- An internet connection through an internet gateway
- An internet connection in a private subnet through a NAT device
- A gateway VPC endpoint to an AWS service, for example, an endpoint to Amazon S3
Cheers 🥂
Osama