Hi, I realise this issue has been covered on the list, but (a) a couple of years ago, and (b) with slightly different symptoms.
On Amazon EC2, I have a PowerDNS server [1] set up for an example.local domain. I also have recursion enabled and set to the EC2 "virtual nameserver", 172.16.0.23. For simplicity's sake, this all runs on the same port. Everything works as expected - example.local names resolve from the gmysql backend, and other names are passed on to Amazon for resolution. (You need to use the EC2 name server to resolve .amazonaws.com addresses to their RFC1918 addresses - if you resolve externally, you get the public IP which NATs to your machine.) Anyway, I have added a machine database.xyzzy.eu-west-1.rds.amazonaws.com, which is a multi-AZ deployment (60 second TTL for failover to a second server if the first is unreachable). I have set up a record for data.example.local which is a cname to this address, but querying it gives me an NXDOMAIN (/not/ a SERVFAIL). I have seen mention that you need to have a '.' suffix for records pointing to external names, but this doesn't seem to make a difference. Can what I want to do here, be done? From what I can piece together, all I should have had to do is enable recursion (which was enabled anyway). Regards Craig [1] Version 2.9.22-3 from Ubuntu 10.04.
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