We have put the path of webapp-config directory as follows:
/var/lib/tomcat7/webapps/webapp/WEB-INF/classes/system-properties-location.properties
where
webapp= name of your webapp file
Here are the contents of system-properties-location.properties file:
location=/var/lib/tomcat7/webapp-configs/webapp
It points to an external location to pull environment specific properties from. This way we can deploy same war in dev , staging and prod without modifying war contents.