"local.properties" is a configuration file that lives in Mifos Configuration Locations.

    #########################################
    # SETTINGS TYPICALLY USED IN PRODUCTION #
    #########################################

    # settings used at build time and by a running/deployed Mifos instance
    # (defaults are in mainDatabase.properties)
    main.database=mifos_gazelle
    main.database.host=localhost
    main.database.port=3306
    main.database.user=mifos
    main.database.password=mifos

    ###################################################
    # SETTINGS TYPICALLY USED IN DEVELOPMENT AND TEST #
    ###################################################

    # settings used at build time by legacy Ant build only
    deploy.destination=${env.HOME}/dist/tomcat6/webapps
    test.haltonerror=true
    test.haltonfailure=true

    # settings used during integration tests
    # (defaults are in integrationDatabase.properties)
    integration.database=mifos_gazelle_test
    integration.database.host=localhost
    integration.database.port=3306
    integration.database.user=mifos
    integration.database.password=mifos

    # miscellaneous settings used during acceptance tests
    selenium.browser.start.command=*chrome /usr/lib/firefox/firefox-2-bin
    # database settings used during acceptance tests
    # (defaults are in acceptanceDatabase.properties)
    acceptance.database=mifos_gazelle_acceptance
    acceptance.database.host=localhost
    acceptance.database.port=3306
    acceptance.database.user=mifos
    acceptance.database.password=mifos

Explanation of typical properties:

This file currently does not trim white spaces.  See Issue MIFOS-2387.