There is no such thing as 'caching results' at the JBoss connection pool level. 

The problem is in your undertanding of transactions. Use of a 
local-transaction-datasource implies that you want JBoss to manage transactions 
for you.  When you close a connection, this  does not mean that JBoss commits 
the transaction. 

For example consider the following pseudo code: 

Connection c = get C Connection
c.doJDBC
c.close()

//NO Txn has been committed yet
Connectiond = get D Connection
d.doJDBC
d.close()

//Still no commit

Connection d still will see the old records of c because the container has not 
committed your transaction. Depending upon where this is executed (EJB, 
Servlet) the transaction will be committed at different times and each has 
different semantics. I suggest some basic reading on JTA, LocalTransactions and 
JDBC. 




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