MySQL ERROR 1045 (28000): Access denied for user 'bill'@'localhost' (using password: YES)

I'm connected to my Amazon EC2 instance. I can login with MySQL root with this command: mysql -u root -p Then I created a new user bill with host % CREATE USER 'bill'@'%' IDENTIFIED BY 'passpass'; Granted all the privileges to user bill: grant all privileges on *.* to 'bill'@'%' with grant option; Then I exit from root user and try to login with bill: mysql -u bill -p entered the correct password and got this error: > ERROR 1045 (28000): Access denied for user 'bill'@'localhost' (using password: YES)