Check out the "watch" facility in the APM ... I've not tested my changes to make it work with .xql files thoroughly, let me know if it doesn't seem to be working for you. aD implemented this for Tcl library files, I just extended it as described below:
I recently modified the APM to implement the "watch" feature for .xql files. The functionality is equivalent to the already existing functionality for Tcl library files.
When you modify a query file or Tcl library file and visit the APM's index page, the package will be marked with a "reload" hyperlink. Punch it and all modified Tcl library and query files will be reloaded. They'll be listed with a "watch" hyperlink, punch that and the system will monitor the file(s) and reload them automatically every time they change, very convenient for development. You should never need to reboot AOLserver in order to accomodate such changes if you use this feature of the APM.
You can't turn off "watching" once you've turned it on, other than by rebooting AOLserver. That's no big deal since you'll be enabling this on your local development servers.