The embedded HSQL is configured in the element

<driverProperty>
    <type>hsql</type>
    <hostname>localhost</hostname>
     ...
    <dbName>...</dbName>
    ...
</driverProperty>

in conf/database.xml. The value of the dbName subelement is a path on your file system. If it is a relative path, it starts with WASP_HOME. The instance name is added as a suffix, following a '-'. Instead of using the instance name as a suffix, you can override dbName with a new path to the database file by using the property hsql.database.file.

If you want to use HSQL DB as a standalone server, set the value of the type element to hsql-remote. The value of the dbName element should then be changed to hsql://nodename[:port] instead of a file name. When this setup is specified WSO2 SOA Enablement Server will use the database server already running at the specified node and port.

	Note
	The HSQL database server can be started with this command: java -classpath hsqldb.jar org.hsqldb.Server [-port XXXX] [-database DATASET]