A computer system of a federation coupled to a network including a server having an internal address associated with a first subnet and a network abstraction and isolation layer rules-based federation and masquerading (NAIL RBFM) interface that interfaces the server with the network. The NAIL RBFM interface transforms the internal address between the first subnet and a second subnet for intra-federation communications. The NAIL RBFM interface performs transform and inverse transform operations to convert between internal and external addresses of intra-federation network traffic. The operations may be performed on source and destination addresses, and may be configured in any of several manners, such as modifying at least one bit of an address, replacing at least one octet of an IP address, substituting a prefix of an address, replacing an entire address, etc.