Why would that happen?
Using the wrong connection string would mean the membership and role tables would not be found by your application.
Is LocalSqlServer just another arbitrary name for the connection string value?
In the web.config you'll see a connection string called LocalSqlServer
Where are the roles stored?
Have a look in the aspnet_Roles
table if it's the old membership framework, or UserProfile
if it's the newer SimpleMembershipProvider.