A nice way to do this is using Apache commons IOUtils to copy the InputStream into a StringWriter... something like

StringWriter writer = new StringWriter();
IOUtils.copy(inputStream, writer, encoding);
String theString = writer.toString();

or even

// NB: does not close inputStream, you'll have to use try-with-resources for that
String theString = IOUtils.toString(inputStream, encoding); 

Alternatively, you could use ByteArrayOutputStream if you don't want to mix your Streams and Writers