Just to add some clarification on Quanta's statement as I went round and round on this same issue for quite a while. The missing piece, for me, was to realize that MySQL authenticates not just the user but the user and the host. If you log in locally and look at the user table you will see this. For example, you will have root@localhost. You can specify the host that the user is allowed to log in from or you can wild card it with a % character.
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