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The "FAQ/Password" page has been changed by markt:
http://wiki.apache.org/tomcat/FAQ/Password?action=diff&rev1=7&rev2=8

Comment:
Add note about how the config file should be protected

  = Passwords =
  == Why are plain text passwords in the config files? ==
- Because there isn't a a good way to "secure" them. When Tomcat needs to 
connect to a database, it needs the original password. While the password could 
be encoded, there still needs to be a mechanism to decode it. And since the 
source to Tomcat is freely available, the attacker would know the decoding 
method. So at best, the password is obscured - but not really protected. Please 
see the user and dev list archives for flames wars about this topic.
+ Because there isn't a a good way to "secure" them. When Tomcat needs to 
connect to a database, it needs the original password. While the password could 
be encoded, there still needs to be a mechanism to decode it. And since the 
source to Tomcat is freely available, the attacker would know the decoding 
method. So at best, the password is obscured - but not really protected. Please 
see the user and dev list archives for flames wars about this topic. That said, 
any configuration file that does contain a password needs to be appropriately 
secured. That means limiting access to the file to the user that Tomcat process 
as and root (or the administrator on Windows).
  
  In [[http://www.catb.org/~esr/writings/cathedral-bazaar/|The Cathedral and 
the Bazaar]], Eric S. Raymond recounts a story where his fetchmail users asked 
for encrypted passwords in the .fetchmailrc file (which is almost identical to 
the situation posed here with server.xml). He refused 
[[http://www.catb.org/~esr/writings/cathedral-bazaar/cathedral-bazaar/ar01s09.html|using
 the same arguments posed here]]: encrypting or otherwise obfuscating the 
password in server.xml does not provide any real security: only "security by 
obscurity" which isn't actually secure.
  

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