I have "Azure Database for PostgreSQL Flexible server" provisioned with authentication I am able to connect to that DB from my local environment Secondly I have application on another VNET and VM which I manage and is again connecting fine from my local How should these 2 VNETS be connected by following best practice, so that my app from one VNET can access source DB on another VNET (and region)?
Update,
Permission needed
please see attached
When I try to add peering for remote database hosted vnet, it expects me to have access there. This doesn't sound right, as same person dont have to access to both of the vnets. My access to DB is at postgres level auth

To connect your application on
one VNetwith the Azure Database for PostgreSQL Flexible server on a differentVNet, you can useVNet peeringfor establishing asecureconnection betweentwo VNetsin the same or different regions.Here are the steps to configure
VNetpeering between the two VNets.VNet peeringconnection between two VNets, follow steps below.Azure Portal > Virtual network > select Vnet > Peerings
After configuring the
VNet peering, please verify the peering status.After creating the NSG, associate it with the
PostgreSQL Flexiblesubnet and then create an NSG rule to allow traffic from theVNetwhere your application resides.For more details, follow Ms. Doc for a detailed explanation about Azure Database for PostgreSQL - Flexible Server with private access (VNET Integration).
Azure Database for PostgreSQL - Flexible Server networking with Private Link - Preview