The answer is simple: from the database.
By the way - when you take a look into the source code of db:* tasks you can see that migration tasks calls schema:dump after the run
desc "Migrate the database (options: VERSION=x, VERBOSE=false)."
task :migrate => :environment do
ActiveRecord::Migration.verbose = ENV["VERBOSE"] ? ENV["VERBOSE"] == "true" : true
ActiveRecord::Migrator.migrate("db/migrate/", ENV["VERSION"] ? ENV["VERSION"].to_i : nil)
Rake::Task["db:schema:dump"].invoke if ActiveRecord::Base.schema_format == :ruby
end
So the migration works in the way that it change the database and then generate schema.rb file.
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