Syntax:
SET PASSWORD [FOR user] =
    {
        PASSWORD('some password')
      | OLD_PASSWORD('some password')
      | 'encrypted password'
    }

The SET PASSWORD statement assigns a password to an existing MySQL user
account.

If the password is specified using the PASSWORD() or OLD_PASSWORD()
function, the literal text of the password should be given. If the
password is specified without using either function, the password
should be the already-encrypted password value as returned by
PASSWORD().

With no FOR clause, this statement sets the password for the current
user. Any client that has connected to the server using a nonanonymous
account can change the password for that account.

In MySQL 5.0, enabling the read_only system variable does not prevent
use of SET PASSWORD.

With a FOR clause, this statement sets the password for a specific
account on the current server host. Only clients that have the UPDATE
privilege for the mysql database can do this. The user value should be
given in user_name@host_name format, where user_name and host_name are
exactly as they are listed in the User and Host columns of the
mysql.user table entry. For example, if you had an entry with User and
Host column values of 'bob' and '%.loc.gov', you would write the
statement like this:

SET PASSWORD FOR 'bob'@'%.loc.gov' = PASSWORD('newpass');

URL: http://dev.mysql.com/doc/refman/5.0/en/set-password.html

