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To enable site-to-site connectivity with Azure VPN, configuring a gateway subnet is essential. The gateway subnet is a specific range of IP addresses within a virtual network designed specifically for the VPN gateway. It is crucial because the VPN gateway needs a dedicated subnet to operate effectively; without this, it would not be able to properly establish the connection between the on-premises network and the Azure virtual network.

When a gateway subnet is defined, it allows for adequate routing and management of traffic, ensuring that data can flow securely between the two environments. The gateway subnet provides the necessary resources and mechanisms for the establishment of VPN tunnels, facilitating seamless site-to-site connections.

While other features like Network Security Groups, public IP addresses, and private endpoints play important roles within the Azure environment, they do not directly enable site-to-site VPN connectivity in the same way that a gateway subnet does. A public IP address is typical for the VPN gateway and is inherently needed for the connection, but it is the configuration of the gateway subnet that specifically allows the VPN to function.