Instead of using a DOMParser, use a SAXParser. This reads from an input stream or reader so you can keep the XML on disk instead of loading it all into memory.
SAXParserFactory factory = SAXParserFactory.newInstance();
factory.setValidating(true);
factory.setNamespaceAware(true);
SAXParser parser = factory.newSAXParser();
XMLReader reader = parser.getXMLReader();
reader.setErrorHandler(new SimpleErrorHandler());
reader.parse(new InputSource(new FileReader ("document.xml")));