How to pretty print XML from Java?

I have a Java String that contains XML, with no line feeds or indentations. I would like to turn it into a String with nicely formatted XML. How do I do this?

String unformattedXml = "<tag><nested>hello</nested></tag>";
String formattedXml = new [UnknownClass]().format(unformattedXml);

Note: My input is a String. My output is a String.

(Basic) mock result:

<?xml version="1.0" encoding="UTF-8"?>
<root>
  <tag>
    <nested>hello</nested>
  </tag>
</root>

Answer

Now it’s 2012 and Java can do more than it used to with XML, I’d like to add an alternative to my accepted answer. This has no dependencies outside of Java 6.

import org.w3c.dom.Node;
import org.w3c.dom.bootstrap.DOMImplementationRegistry;
import org.w3c.dom.ls.DOMImplementationLS;
import org.w3c.dom.ls.LSSerializer;
import org.xml.sax.InputSource;

import javax.xml.parsers.DocumentBuilderFactory;
import java.io.StringReader;

/**
 * Pretty-prints xml, supplied as a string.
 * <p/>
 * eg.
 * <code>
 * String formattedXml = new XmlFormatter().format("<tag><nested>hello</nested></tag>");
 * </code>
 */
public class XmlFormatter {

    public String format(String xml) {

        try {
            final InputSource src = new InputSource(new StringReader(xml));
            final Node document = DocumentBuilderFactory.newInstance().newDocumentBuilder().parse(src).getDocumentElement();
            final Boolean keepDeclaration = Boolean.valueOf(xml.startsWith("<?xml"));

        //May need this: System.setProperty(DOMImplementationRegistry.PROPERTY,"com.sun.org.apache.xerces.internal.dom.DOMImplementationSourceImpl");


            final DOMImplementationRegistry registry = DOMImplementationRegistry.newInstance();
            final DOMImplementationLS impl = (DOMImplementationLS) registry.getDOMImplementation("LS");
            final LSSerializer writer = impl.createLSSerializer();

            writer.getDomConfig().setParameter("format-pretty-print", Boolean.TRUE); // Set this to true if the output needs to be beautified.
            writer.getDomConfig().setParameter("xml-declaration", keepDeclaration); // Set this to true if the declaration is needed to be outputted.

            return writer.writeToString(document);
        } catch (Exception e) {
            throw new RuntimeException(e);
        }
    }

    public static void main(String[] args) {
        String unformattedXml =
                "<?xml version="1.0" encoding="UTF-8"?><QueryMessagen" +
                        "        xmlns="http://www.SDMX.org/resources/SDMXML/schemas/v2_0/message"n" +
                        "        xmlns:query="http://www.SDMX.org/resources/SDMXML/schemas/v2_0/query">n" +
                        "    <Query>n" +
                        "        <query:CategorySchemeWhere>n" +
                        "   ttttt         <query:AgencyID>ECBnnnn</query:AgencyID>n" +
                        "        </query:CategorySchemeWhere>n" +
                        "    </Query>nnnnn" +
                        "</QueryMessage>";

        System.out.println(new XmlFormatter().format(unformattedXml));
    }
}