Near the battery is the plug in the vehicle wiring harness that accepts the tow module (white box in the picture below). The trailer harness (shown below) plugs into the white box, is led out through a grommet, and is mounted to the receiver with the supplied bracket. All of this is a kit that is supplied with the OE hitch, but which you can purchase separately if you have an aftermarket hitch.
See this ECS tuning link (also available at your dealer):
BMW E53 X5 M54 3.0L > Exterior > Trailer > ES#185391 Wiring Harness - 71600009698
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2007 X3 3.0si, 6 MT, Premium, White
Retired:
2008 535i, 6 MT, M Sport, Premium, Space Grey
2003 X5 3.0 Steptronic, Premium, Titanium Silver
2002 325xi 5 MT, Steel Grey
2004 Z4 3.0 Premium, Sport, SMG, Maldives Blue
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