Connectivity between NWDS and PO server for NW BPM Development

Hello Experts

I am planning to use NW BPM in my project and checked few blogs of William Li. Accordingly i created 1 BPM scenario in NWDS and attempted to deploy the same but got the error

com.sap.tc.devconf.DevConfigException: Cannot create local DCProxy for DC that is either synchronized or local only:PI-SCP-BUILDT:sap.com/bie/sca/scdl/contributors/xi

I checked few blogs mentioning the same and I hope this is due to the fact that it is the local development component and hence not getting deployed.

Could you please let me know where we configure PO server? I couldn't find anywhere we can set the same. In case of ESR and ID development through NWDS, it gives option to connect to PO server but didn't saw the same while developing BPM process in Composite Designer.

Thanks in advance..