mysql server password change while restoring
According to me you have also dumped the mysql  database which contains the users privileges in the users table of mysql database.  &amp; one more-thing you may have used --add-drop-database  or --add-drop-table while generating the dump

i.e     mysqldump -u user -p passwordd --add-drop-database  --all-databases &gt; /home/dump.sql

and when you have restored it on your local machine as your dump contains the 
drop table statements.so it had firstly dropped your user table in mysql database and then restored new one from the dump thats why you are facing the problem. so don't include the mysql database while generating the dump.

please see various option of mysqldump  using mysqldump --help.

Thanks....