I was wondering if there is any way to supply the database password to Hibernate in such way that the plain text of the password is not left in a configuration file. Can it be supplied as a property or in some encrypted form? Thanks for any help!

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no encryption, but there are ways to not place it into the config file. The typical approach would be something like this in your config file:
hibernate.connection.password=${my.db.password}

And then supply a value for 'my.db.password' as a System property.

Thanks for the help!