It's been a while since I've posted here, but glad to see the board is still active. I am planning to set up a fairly elaborate network by residential standards which will connect two different residences by a 1 GB fiber link with each on a different subnet. We will have network shares on servers at each site and want free access to each while using separate Internet connections, hence the different subnets. I have established a test setup with two Asus RT-N66 routers for now just to work out the bugs with the routing. So far I can only get local traffic to move in one direction unless I enable NAT on both routers which I do not wish to do because of potential issues with double NATs. Internet does work on both subnets but that's it.

Currently I have one router as the gateway to a DOCSIS 3 cable modem connected to a second router. The first (the one connected to the cable modem) connects to the second from one of its LAN ports to the second's WAN port. The first is IP 192.168.1.1 on the LAN while the second is 192.168.1.2 on the WAN and 192.168.2.1 on its LAN. I have the second router set to router mode (NAT disabled to avoid double NAT issues) and its firewall disabled. The first has a static route set to route network 192.168.2.0, Subnet Mask 255.255.255.0, Gateway 192.168.1.2 on LAN. This allows traffic to go from any PC on 192.168.1.0 to 192.168.2.0. I read that no static routing is needed on the second router but attempted to implement it temporarily anyway (Route Network 192.168.1.0, Subnet Mask 255.255.255.0, Gateway 192.168.1.1 on WAN), just to see if that would allow local traffic to go from 192.168.2.0 to 192.168.1.0 but it did not help. The only thing that works thus far is turning on NAT and that should not be needed and is not desired. I can ping from the second router to 192.168.1.0 but not from a PC behind the second router at 192.168.2.0 and no local traffic moves in that direction. I did a TRACERT from behind the second router and the ping never makes a Hop to the first router, it goes no further than the first HOP which is 192.168.2.1 the IP of the second router. Traceroute from the second router at 192.168.2.0 also works as expected. So for some reason, the second router is not routing traffic from 192.168.2.0 to 192.168.1.0. Software firewalls are currently disabled. What am I doing wrong and how can I get it working correctly?

Router 1:
WAN IP: ISP Provided
WAN Subnet Mask: ISP Provided
WAN Gateway: ISP Provided
LAN IP: 192.168.1.1
LAN Subnet Mask: 255.255.255.0
LAN Gateway: 192.168.1.1
Static Route: 192.168.2.0 255.255.255.0 192.168.1.2 on LAN

Router 2:
WAN IP: 192.168.1.2
WAN Subnet Mask: 255.255.255.0
WAN Gateway: 192.168.1.1
LAN IP: 192.168.2.1
LAN Subnet Mask: 255.255.255.0
LAN Gateway: 192.168.2.1
Static Routes: Currently None

Result: Local traffic on 192.168.1.0---->192.168.2.0 and no local traffic 192.168.2.0---->192.168.1.0