I'm using a WSDL with referenced XML schema files containing german umlaut characters. The WSDL and schema files reside in the applications classpath. When XML schema validation is enabled for the corresponding webservice, the schema validation fails if the platform default encoding is not UTF-8 (e.g. ISO-8859-1).
I've created a test case for the issue (tested with CXF 2.7.15) https://github.com/datentechnik/cxf-schema-encoding
When the test case is executed with a -Dfile.encoding=ISO-8859-1 it fails with:
The reason is, schema references in WSDL files are read using platform default encoding:
The InputStreamReader uses the default platform character encoding. I would recommend to set the InputStream in LSInputImpl instead of the CharacterStream and let the Schema parser decide on the character encoding.
I've created a pull request https://github.com/apache/cxf/pull/65 which solves the problem (tested with CXF 2.7.x).
I've only tested with the 2.7.x branch, but from the code I think master is affected as well.