======          pass=12345          =========
|client|      ---------------->     |db server|
======                              =========

<?xml version='1.0' encoding='utf-8'?>
<!DOCTYPE hibernate-configuration PUBLIC
        "-//Hibernate/Hibernate Configuration DTD 3.0//EN"
        "http://hibernate.sourceforge.net/hibernate-configuration-3.0.dtd">

<hibernate-configuration>

    <session-factory>

        <!-- Database connection settings -->
        <property name="connection.provider_class">util.EncryptedConnectionProvider</property>
        <property name="connection.driver_class">org.postgresql.Driver</property>
        <property name="connection.url">jdbc:postgresql:template1://localhost</property>
        <property name="connection.username">pg2</property>
        <property name="connection.password">ABCDE</property>

        <!-- JDBC connection pool (use the built-in) -->
        <property name="connection.pool_size">1</property>

        <!-- SQL dialect -->
        <property name="dialect">org.hibernate.dialect.PostgreSQLDialect</property>

        <!-- Enable Hibernate's automatic session context management -->
        <property name="current_session_context_class">thread</property>

        <!-- Disable the second-level cache  -->
        <property name="cache.provider_class">org.hibernate.cache.NoCacheProvider</property>

        <!-- Echo all executed SQL to stdout -->
        <property name="show_sql">true</property>

        <!-- Drop and re-create the database schema on startup -->
        <property name="hbm2ddl.auto">update</property>

        <mapping resource="events/Event.hbm.xml"/>

    </session-factory>

</hibernate-configuration>

package util;

import java.util.Properties;

import org.hibernate.cfg.Environment;
import org.hibernate.connection.ConnectionProvider;
import org.hibernate.connection.DriverManagerConnectionProvider;

public class EncryptedConnectionProvider extends
      DriverManagerConnectionProvider implements ConnectionProvider {

   public void configure(Properties props) {
      String encryptedPassword = props.getProperty(Environment.PASS);
      
      props.setProperty(Environment.PASS, decryptPassword(encryptedPassword));
      
      super.configure(props);
   }
   
   private String decryptPassword(String encryptedPass) {
      return encryptedPass.toLowerCase();
   }
   
}