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Using Azure Affinity Group

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I'am new to Azure and am working on some basics. 
According to me using of Affinity Groups makes sure your virtual resources are very close to each other. 
So I created an affinity group for West-US. Then I created a cloud service which I'm going to use for my AD controllers. 
I assigned my affinity group to it. When I created my VM and selected my ad cloud service, I could not select the local network I had created. 
I could only place a VM in my local network only if a region was assigned during the creation of a cloud service as opposed to using an affinity group.
Can someone please shed some light on the practical use of when and where I create affinity groups, if at all?
Thank you.

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