Once you install Windows Azure SDK on your local environment , you need to do certain changes to your local envirnoment before you use local SQL Azure storage account, SQL Azure storage emulator points to its default instance and if this SQL server instance in not available on you local environment you need to change default instance to your available SQL instance. Refer following screen shot to change default local SQL Azure storage database. Once above mentioned command line is executed, new instace will have new database with name "DevelopmentStorageDb201206".
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