Used with the Java Persistence API, specifies names and database properties.
When used with the Java Persistence API, the persistence.xml file is usually placed in the META-INF folder; it's used to specify the persistence provider name, entity class names, and properties like the database connection URL, driver, user, password, and so on (taken from http://www.javaworld.com/javaworld/jw-01-2008/jw-01-jpa1.html?page=3).