Computerized methods, systems, and computer-readable media are provided for distributing virtualized gateway functionality to multiple nodes within a physical network. Initially, drivers that carry out the gateway functionality are provisioned to cooperate with endpoints instantiated on the network nodes, while a directory service is implemented to maintain a mapping between virtual internet protocol (IP) addresses and location-dependent addresses, as well as a table enumerating transformation actions according to known pathways connecting the endpoints within a network. In operation, the directory service replies to requests from the driver (carrying source and destination IP addresses of data packets) with the appropriate location-dependent addresses (utilizing the mapping) and the appropriate transformation action(s) (utilizing the table). The transformation action(s) include rewriting headers of the data packets to include the location-dependent addresses, encapsulating the data packets as inner data packets within respective outer data packets, or configuring the data packets with a tunneling protocol.