I would suggest that the database connection would have the option for a local staging and then one for the production or live site, the last one would not verify if it can connect or not since live servers use localhost as well, I tend to work on a vagrant box and git to deploy my work, it has been very hard to switch from my local server to the live one.

Hi Miguel,
Currently you need to have your site in DW defined use the site you are working on.
In the next versions of Datanase connector there will be an option to select different servers/connections.