I believe it is the following property (in bold) in the peristence.xml file 
(from the booking example):

<persistence>
  |    <persistence-unit name="bookingDatabase">
  |       <provider>org.hibernate.ejb.HibernatePersistence</provider>
  |       <jta-data-source>java:/bookingDatasource</jta-data-source>
  |       <properties>
  |          <property name="hibernate.hbm2ddl.auto" value="create-drop"/>
  |          <property name="hibernate.show_sql" value="true"/>
  |          <!-- These are the default for JBoss EJB3, but not for HEM: -->
  |          <property name="hibernate.cache.provider_class" 
value="org.hibernate.cache.HashtableCacheProvider"/>
  |          <property name="hibernate.transaction.manager_lookup_class" 
value="org.hibernate.transaction.JBossTransactionManagerLookup"/>
  |       </properties>
  |    </persistence-unit>
  | </persistence>

This actually bit me on butt when I first incorporated the seam setup into my 
existing project, as it dropped my tables and recreated them.  Ouch - so mych 
for my test data!  I learned that lesson pretty quickly.


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