I recently bought an USB to Serial adapter so i can send my sketches to atmega328, and has DTR pin available... so i dont need to manually reset the atmega chip

this is the pin layout

what i would like to know is:
if i have a breadboard arduino that is receiving power via external source that goes through the 7085 voltage regulator ... like this:

in order to use the adapter to send sketches to atmega328 do i still have to connect the +5v of the adapter to atmega's VCC ?! Or that would be only if i wanted to power the arduino via USB ?
Thanks