I'm not saying that you need to set up a testing server like XAMPP or WAMPP on your system, you are misunderstanding me.
When setting up your Dreamweaver site, there are 3 main sections:
1) Local Information
2) Connection to the Testing server
3) Connection to the Remote server
When you create a database connection in Dreamweaver and test it, Dreamweaver connects to the testing server that you defined. also if you use live view, it uses the testing server connection.
The testing server connection in Dreamweaver is the key to using it for dynamic development.
NOTE: this is just a connection to _a_ server, any server. for your uses, you want to use the connection settings for connecting to the remote server as the settings for the testing. you are trying to use the Remote server as both the live and the testing server
