XmlReaderSettings.ValidationType Property

using System;
using System.Xml;
using System.Xml.Schema;
using System.IO;

public class Sample {

  public static void Main() {

    // Create the XmlSchemaSet class.
    XmlSchemaSet sc = new XmlSchemaSet();

    // Add the schema to the collection.
    sc.Add("urn:bookstore-schema", "books.xsd");

    // Set the validation settings.
    XmlReaderSettings settings = new XmlReaderSettings();
    settings.ValidationType = ValidationType.Schema;
    settings.Schemas = sc;
    settings.ValidationEventHandler += new ValidationEventHandler (ValidationCallBack);

    // Create the XmlReader object.
    XmlReader reader = XmlReader.Create("booksSchemaFail.xml", settings);

    // Parse the file. 
    while (reader.Read());

  }

  // Display any validation errors.
  private static void ValidationCallBack(object sender, ValidationEventArgs e) {
    Console.WriteLine("Validation Error: {0}", e.Message);
  }
}

<?xml version='1.0'?>
<bookstore xmlns="urn:bookstore-schema">
  <book>
    <author>
      <first-name>Benjamin</first-name>
      <last-name>Franklin</last-name>
    </author>
  </book>
  <book genre="novel">
    <title>The Confidence Man</title>
    <author>
      <first-name>Herman</first-name>
      <last-name>Melville</last-name>
    </author>
    <price>11.99</price>
  </book>
  <book genre="philosophy">
    <title>The Gorgias</title>
    <author>
      <name>Plato</name>
    </author>
    <price>9.99</price>
  </book>
</bookstore>

<xsd:schema xmlns:xsd="http://www.w3.org/2001/XMLSchema"
    xmlns="urn:bookstore-schema"
    elementFormDefault="qualified"
    targetNamespace="urn:bookstore-schema">

 <xsd:element name="bookstore" type="bookstoreType"/>

 <xsd:complexType name="bookstoreType">
  <xsd:sequence maxOccurs="unbounded">
   <xsd:element name="book"  type="bookType"/>
  </xsd:sequence>
 </xsd:complexType>

 <xsd:complexType name="bookType">
  <xsd:sequence>
   <xsd:element name="title" type="xsd:string"/>
   <xsd:element name="author" type="authorName"/>
   <xsd:element name="price"  type="xsd:decimal"/>
  </xsd:sequence>
  <xsd:attribute name="genre" type="xsd:string"/>
 </xsd:complexType>

 <xsd:complexType name="authorName">
  <xsd:sequence>
   <xsd:element name="first-name"  type="xsd:string"/>
   <xsd:element name="last-name" type="xsd:string"/>
  </xsd:sequence>
 </xsd:complexType>

</xsd:schema>