A distributed routing domain is disclosed wherein each user or tenant can deploy a multi-subnet routing topology in a network-virtualized datacenter. A virtualization module implements the distributed routing domain and enforces a multi-subnet routing topology in a distributed fashion without requiring a standalone physical router or VM router. The topology and the routing rules are distributed in a network virtualization module on each hypervisor host, and collectively realize the multi-subnet topology for a virtual network over any physical network topology.