In my Java Project, hibernate.cfg.xml is sitting in the source folder-- \\src. So, to be precise, it is a file in the source folder, sitting right next to the
By default hibernate will look at hibernate.cfg.xml on your classpath root. If you're packaging a jar, this is typically right at the top level. For war, typically on WEB-INF/classes.
If you eclipse is set with src folder as a source directory then it should be fine, just double check the generated war/jar has this file at correct location
Try refreshing / cleaning your eclipse project as often the resource is out of sync with file system.
Also have a look at Configuration class, it has configure(String)
method to specify a custom location