When the JVM loads classes, or otherwise sees a literal string, or some code interns a string, it adds the string to a mostly-hidden lookup table that has one copy of each such string. If another copy is added, the runtime arranges it so that all the literals refer to the same string object. This is called "interning". If you say something like
String s = "test";
return (s == "test");
it'll return true, because the first and second "test" are actually the same object. Comparing interned strings this way can be much, much faster than String.equals, as there's a single reference comparison rather than a bunch of char comparisons.
You can add a string to the pool by calling String.intern(), which will give you back the pooled version of the string (which could be the same string you're interning, but you'd be crazy to rely on that -- you often can't be sure exactly what code has been loaded and run up til now and interned the same string). The pooled version (the string returned from intern) will be equal to any identical literal. For example:
String s1 = "test";
String s2 = new String("test"); // "new String" guarantees a different object
System.out.println(s1 == s2); // should print "false"
s2 = s2.intern();
System.out.println(s1 == s2); // should print "true"
