To configure your project with a development database hosted on Azure, you'll need to configure the following settings:

Development database

Your development database should be set to your Azure instance/database.

Shadow database

It is recommended for your shadow database to be deployed to a local instance of SQL Server. You can specify a custom connection string for the shadow database in your user settings file.

The shadow database can be located on Azure if using a project with custom scripts provisioning. If you do need to locate your shadow database on Azure, it will probably be necessary to tweak the CreateDatabase.sql and DropDatabase.sql scripts to improve the performance of these operations on Azure.

Database schema provider

The database schema provider should be set to either Microsoft Azure SQL Database or Microsoft Azure SQL Database v12. This ensures that the deployment package produced during the build process is compatible with Azure.