Network Address Translation (NAT) allows private IP networks to connect to the public Internet using a single public IP address. NAT is run on routers and works by replacing the private IP addresses and port numbers in data packets with public IP addresses and port numbers when the packets leave the private network, and translating them back when packets return. This conserves public IP addresses and allows private networks to use non-routable address ranges while still accessing the Internet. Common NAT configurations include one-to-one mapping of addresses, IP masquerading of multiple private addresses to a single public address, and load balancing multiple servers accessed through a single public IP.