I have this function in my code base, this should work for you.
public static Document loadXMLFromString(String xml) throws Exception
{
    DocumentBuilderFactory factory = DocumentBuilderFactory.newInstance();
    DocumentBuilder builder = factory.newDocumentBuilder();
    InputSource is = new InputSource(new StringReader(xml));
    return builder.parse(is);
}
also see this similar question
One way is to use the version of parse that takes an InputSource rather than a file
A SAX InputSource can be constructed from a Reader object. One Reader object is the StringReader
So something like
parse(new InputSource(new StringReader(myString))) may work. 
    Convert the string to an InputStream and pass it to DocumentBuilder
final InputStream stream = new ByteArrayInputStream(string.getBytes(StandardCharsets.UTF_8));
DocumentBuilder builder = DocumentBuilderFactory.newInstance().newDocumentBuilder();
builder.parse(stream);
EDIT
In response to bendin's comment regarding encoding, see shsteimer's answer to this question.
javadocs show that the parse method is overloaded.
Create a StringStream or InputSource using your string XML and you should be set.
I'm using this method
public Document parseXmlFromString(String xmlString){
    DocumentBuilderFactory factory = DocumentBuilderFactory.newInstance();
    DocumentBuilder builder = factory.newDocumentBuilder();
    InputStream inputStream = new    ByteArrayInputStream(xmlString.getBytes());
    org.w3c.dom.Document document = builder.parse(inputStream);
    return document;
}
    
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