Local Proxy ARP

Local Proxy ARP is an alternative to Proxy ARP that works within the same network or VLAN. In a standard Proxy ARP situation, a router responds to ARP requests intended for another network, essentially “pretending” to be the destination host and then forwarding the traffic appropriately. With Local Proxy ARP, the router responds to ARP requests for hosts on the same network. This can be useful when hosts on the same network are not allowed to communicate directly for security reasons, such as when private VLANs are deployed.

https://networklessons.com/ip-routing/proxy-arp-explained

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