We introduce Tarzan, a peer-to-peer anonymous network layer that provides generic IP forwarding. Unlike prior anonymizing layers, Tarzan is flexible, transparent, decentralized, and highly scalable. Tarzan achieves these properties by building anonymous IP tunnels between an open-ended set of peers. Tarzan can provide anonymity to existing applications, such as web browsing and file sharing, without change to those applications. Performance tests show that Tarzan imposes minimal overhead over a corresponding non-anonymous overlay route.