if your database.yml has the correct structure, then this password is used so dont worry about that. Try the following
from your local machine and key in the password you are using in your database.yml as it seems that the error lies with mysql.
If your connection is ineed refused, login as root/administrator and do a
GRANT ALL ON myData_development.* TO 'userName'@'localhost' IDENTIFIED BY 'passWord'
for adding the user to mysql.