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The FEDERATED storage engine is available
beginning with MySQL 5.0.3. It is a storage engine that accesses
data in tables of remote databases rather than in local tables.
The FEDERATED storage engine is available
beginning with MySQL 5.0.3. This storage engine enables data to be
accessed from a remote MySQL database on a local server without
using replication or cluster technology. When using a
FEDERATED table, queries on the local server are
automatically executed on the remote (federated) tables. No data is
stored on the local tables.
To include the FEDERATED storage engine if you
build MySQL from source, invoke configure with
the --with-federated-storage-engine option.
Beginning with MySQL 5.0.64, the FEDERATED
storage engine is not enabled by default in the running server; to
enable FEDERATED, you must start the MySQL server
binary using the --federated option.
To examine the source for the FEDERATED engine,
look in the sql directory of a source
distribution for MySQL 5.0.3 or newer.
A forum dedicated to the FEDERATED storage
engine is available at http://forums.mysql.com/list.php?105.

User Comments
Optional storage engines require privileges and will fail to load when --skip-grant-tables is specified.
The result the entire db will fail to load and the following error will appear in the logs:
110318 21:37:23 [ERROR] /usr/local/libexec/mysqld: unknown option '--federated'
This in turn means that an upgrade from 5.x needs to be done in two steps if you have federated tables. Once with --skip-grant-tables and without --federated, the once without --skip-grant-tables and with --federated.
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