An example of persistence.xml with an embedded HSQDB.

persistence.xml

<persistence xmlns="http://java.sun.com/xml/ns/persistence" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:schemaLocation="http://java.sun.com/xml/ns/persistence http://java.sun.com/xml/ns/persistence/persistence_2_0.xsd" version="2.0">
  
  <persistence-unit name="persistence" transaction-type="RESOURCE_LOCAL">

  	<provider>org.hibernate.ejb.HibernatePersistence</provider>
		<class>com.geowarin.hibernate.jpa.standalone.model.User</class>

		<properties>
			<property name="javax.persistence.jdbc.driver" value="org.hsqldb.jdbcDriver"/>
			<property name="javax.persistence.jdbc.url" value="jdbc:hsqldb:mem:standalone"/>
			<property name="javax.persistence.jdbc.user" value="sa"/>
			<property name="javax.persistence.jdbc.password" value=""/>
			<property name="hibernate.dialect" value="org.hibernate.dialect.HSQLDialect"/>
			<property name="hibernate.hbm2ddl.auto" value="create"/>
			<property name="hibernate.hbm2ddl.import_files" value="sql/import-users.sql"/>
			<property name="hibernate.show_sql" value="true"/>
			<property name="hibernate.format_sql" value="false"/>
		</properties>

  </persistence-unit>
  
</persistence>