My organization is looking at setting up the base deployment of ArcGIS Enterprise later this year. We've been running the ArcGIS Server (ArcSOC.exe services) for a while now.
We are interested in using Enterprise to enable our municipal users to assist with editing datasets related to addressing (as they are the authorities on this subject). After completing some initial reading, it looks like we could set hosted feature layer view definition to control access of the layer to each municipality.
Ideally, they would be editing data (probably from a version) coming out of our SDE SQL database. However, I'm aware that there is some relationship between Hosted Services and the Data Store (which happens to be a seperate Postgres database).
I'm trying to understand if we can actually accomplish what we want to. Or if the data edits from our users would be inside the Data Store database?
You can still publish directly to the GIS Server using your SQL server RDBMS as a data source as you did previously - you don't have to copy data from your SQL server instance into the Data Store. Instead of a hosted feature service, the outcome will be an 'arcobjects' based feature service. The primary difference between hosted feature services and 'classic' ArcObjects based services is scalability - hosted feature services are far more lightweight/scalable.
I'll echo what Randall said, there isn't a reason in this case that you HAVE to use Data Store if you don't want to. it's certainly an option but it sounds like you prefer to edit referenced data in your Enterprise DBMS.
If your primary concern is permissions for each municipality, there are a few ways you could set things up so that each municipality can only edit their own data.
You could have each municipality be the owner of their own services. Allowed operations on services apply to publishers and users only so admins and service owners can perform all operations.
You could possibly use ownership based access control: https://enterprise.arcgis.com/en/server/latest/publish-services/windows/ownership-based-access-contr...
You could publish different services based on different child versions. This is more work for you to manage since it adds geodatabase complexity and management requirements but it's something to consider at least.
Hope that gives you ideas.