Create a VPC with Nat Gateway in AWS

A Virtual Private Cloud or VPC is one of the basic elements to start building your infrastructure in the Cloud. It provides isolation for our resources and security.

When we create an account in AWS, a default VPC is set up on our behalf. This makes very easy to start creating resources in it, but after playing around, you will soon realize that you need a more customized network.

In the following lines, I will guide you step by step in the creation of all the resources you will need to create your own VPC using Cloudformation.

To make it easier, I’ve created a Cloudformation template that you can use and follow all the process. You will find it my GitHub:

Before start, let me show you how our VPC will look like:

AWS VPC Diagram

Our VPC will consist of 4 subnets (two public and two private), the fact that a subnet will be configured public or private will depend on which route table is associated. Basically, all the subnets associated with the routing table where the internet gateway is configured would be public.

Optionally, we can decide to create a NatGateway, this resource would give internet connectivity to our private subnets.

Now that we know what we are going to build, let’s get our hands dirty …


This will be the first part of our template, here we define custom values to configure the VPC.

  Type: String
  Default: custom
  Type: String
  Type: String
  Type: List<String>
  Type: String
  Default: 16
  Type: String
  Default: 24
  Type: String
  Default: false
    - true
    - false
  • prefix: This value will be appended in the resource’s name that we are going to create to be sure that there is any conflict with other resources that you might have, by default is custom.
  • sgCidr: Custom IP to configure the Security Group to allow access only from the specified IP that you can define, by default is which means open to the internet.
  • vpcCidrBlock: IP block for the VPC network , for example,
  • subnetCidrBlocks: IP blocks for the subnets separated by commas, for example,,,,
  • vpcCidrRange: IP range for the VPC, by default 16.
  • subnetCidrRange: IP range for the Subnets, by default 24.
  • createNatGateway: Flag to decide if the template would create a NatGateway.


  EnabledNatGateway: !Equals [ !Ref createNatGateway, 'true' ]

Because the creation of the resources for the NatGateway depends on the value of createNatGateway parameter, in the Conditions section we use the Ref Intrinsic Function to get the value of the parameter and the Equals Intrinsic Function to check if the value equals true.

Doing that we initialize the variable EnabledNatGateway with the result and we will use this variable in some resources to specify that should be only created when the condition is satisfied.

If you want to know more about Intrinsic Functions I recommend you have a look at the Cloudformation documentation in this link:



  Type: AWS::EC2::VPC
    CidrBlock: !Join ["/", [!Ref vpcCidrBlock, !Ref vpcCidrRange]]
    EnableDnsHostnames: true
    EnableDnsSupport: true
      - Key: "Name"
        Value: !Join ["-", [!Ref prefix, "vpc"]]

This block creates the VPC, when the property EnableDnsHostnames is set to true the EC2 instances that are created in the VPC get DNS hostnames and the EnableDnsSupport indicates whether the DNS resolution is supported for the VPC.

If you kept the value of the parameter vpcCidrRange to 16, that means that our VPC will be able to host 65536 IPs approximately.

Security Group

  Type: AWS::EC2::SecurityGroup
    GroupName:  !Join ['-', [!Ref prefix, 'dmz-sg']]
    GroupDescription: DMZ Security Group to allow Access to SSH
    VpcId: !Ref VPC
      - Description: Allow SSH
        IpProtocol: tcp
        FromPort: '22'
        ToPort: '22'
        CidrIp: !Ref sgCidr
      - Description: Allow Http
        IpProtocol: tcp
        FromPort: '80'
        ToPort: '80'
        CidrIp: !Ref sgCidr
      - Description: Allow Https
        IpProtocol: tcp
        FromPort: '443'
        ToPort: '443'
        CidrIp: !Ref sgCidr

The creation of a Security Group is not really necessary, but I think is very useful at least to have a default one attached to the VPC. This security group allows SSH, HTTP and HTTPS access from the custom IP configure by the sgCidr parameter.


  Type: AWS::EC2::Subnet
    VpcId: !Ref VPC
    AvailabilityZone: !Select 
      - 0
      - !GetAZs 
        Ref: 'AWS::Region'
    CidrBlock: !Join ["/", [!Select [0, !Ref subnetCidrBlocks], !Ref subnetCidrRange]]
      - Key: "Name"
        Value: !Join ["-", [!Ref prefix, "subnet1"]]

In these blocks, we configure the subnets that will be created in our VPC, in this example we’ve set 4 subnets but we can add more depending on our own requirements.

Here, we use the Select Intrinsic Function to select in which Availability Zone of our Region we want to assign our subnet, in this example we will alternate our subnets between the first and the second Availability Zone of the Region, we manage that changing the index of the Select function.

Bear in mind that the Availability Zones in the Regions are not the same in all the AWS Accounts

For the subnets IP, we do something similar. We use the list provided by subnetCidrBlocks parameter to get the respective value.

Route Tables

  Type: AWS::EC2::RouteTable
    VpcId: !Ref VPC
      - Key: "Name"
        Value: !Join ["-", [!Ref prefix, "public", "table"]]
  Type: AWS::EC2::RouteTable
    VpcId: !Ref VPC
      - Key: "Name"
        Value: !Join ["-", [!Ref prefix, "private", "table"]]

“A route table contains a set of rules, called routes, that are used to determine where network traffic from your subnet or gateway is directed”


For this example, we are going to create two route tables. In one of them, we will link later an Internet Gateway and the subnets that we want to expose to the internet and we keep the other for those subnets that we want to have in our private area of the VPC.

Subnet Association

  Type: AWS::EC2::SubnetRouteTableAssociation
    RouteTableId: !Ref PublicRT
    SubnetId: !Ref Subnet1

  Type: AWS::EC2::SubnetRouteTableAssociation
    RouteTableId: !Ref PrivateRT
    SubnetId: !Ref Subnet3

This is an example of subnet association, the first one links the subnet number one with the public Route Table and the second association sets the subnet number three with the private Route Table. We do the same for subnets numbers two and four.

Internet Gateway

  Type: AWS::EC2::InternetGateway
      - Key: "Name"
        Value: !Join ["-", [!Ref prefix, "ig"]]
  Type: AWS::EC2::VPCGatewayAttachment
    InternetGatewayId: !Ref InternetGateway
    VpcId: !Ref VPC

    Type: AWS::EC2::Route
      RouteTableId: !Ref PublicRT
      GatewayId: !Ref InternetGateway

As I explained before, in order to provide Internet connectivity to our subnets, we need to use an Internet Gateway. To achieve that first, we create an Internet Gateway resource, then we attach it to our VPC and finally, we configure the association between our IG and the destination cidr block in the public Route Table.

Nat Gateway

  Type: AWS::EC2::EIP
  Condition: EnabledNatGateway
    Domain: vpc

  Type: AWS::EC2::NatGateway
  Condition: EnabledNatGateway
    AllocationId: !GetAtt ElasticIP.AllocationId
    SubnetId: !Ref Subnet1

  Type: AWS::EC2::Route
  DependsOn: [ NatGateway ]
  Condition: EnabledNatGateway
    DestinationCidrBlock: ''
    NatGatewayId: !Ref NatGateway
    RouteTableId: !Ref PrivateRT

This section is optional and only will be created if it’s set the value true in the createNatGateway parameter. You can see that these resources have the Condition field in its definition assigned with the variable EnabledNatGateway that we defined in the Conditions section of our template.

Maybe you would be asking yourself, why would I need to create a NatGateway? Well, probably you won’t need to create one unless you need to internet connectivity in your private subnets.

But NatGateways are not cheap and keep it 24/7 can increase your bill substantially, so that’s why I decided to give you the option the create it only when you need it and then delete it easily just changing the parameter to false.

There are cheaper options like Nat Instances, but then you have to take care of the instance patching and autoscaling.

To create a NatGateway we need to attach to it an Elastic IP and place it one of our public subnets, in this example Subnet1. Also, we have to add a new route in our Private Route Table that associates our NatGateway with the destination


  Value: !Ref VPC
    Name: !Sub "${AWS::StackName}-vpc-id"

  Value: !Ref Subnet1
    Name: !Sub "${AWS::StackName}-subnet1-id"

  Value: !Ref Subnet2
    Name: !Sub "${AWS::StackName}-subnet2-id"
  Value: !Ref Subnet3
    Name: !Sub "${AWS::StackName}-subnet3-id"
  Value: !Ref Subnet4
    Name: !Sub "${AWS::StackName}-subnet4-id"

  Value: !Ref PublicRT
    Name: !Sub "${AWS::StackName}-public-rt-id"
  Value: !Ref PrivateRT
    Name: !Sub "${AWS::StackName}-private-rt-id"

  Value: !Ref DMZSecurityGroup
    Name: !Sub "${AWS::StackName}-dmz-sg"

  Value: !GetAtt VPC.DefaultSecurityGroup
    Name: !Sub "${AWS::StackName}-default-sg"

Last but not least, we can define some outputs that our template will expose. These outputs can be used by other templates to make references to the resources that we have created.

We need to define a name for each output and for convention we use the stack name of the template as a prefix to avoid name conflicts. To get the stack name we use the Sub Intrinsic Function that substitutes the reference AWS::StackName automatically.

In this example, we’ve configured outputs to expose our Vpc Id, the IDs for our 4 subnets and the Security Group Identifier.


Having a custom VPC in our cloud environment is one of the basic pillars for our AWS infrastructure, in this example, we’ve set up a basic configuration, but you can modify this template to adapt it to your own requirements.

Adding more subnets, setting other IPs and different IP ranges, perhaps having more granular Route Tables or even assigning some ACLs (Access Control List) to our subnets to have an extra layer of security.


25 Replies to “Create a VPC with Nat Gateway in AWS”

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