Lao-Tzu's 'WAY' is a term used to refer to Taoism, an ancient Chinese philosophy that emphasizes living in harmony with the Tao, or the natural order of the universe. Taoism is based on the teachings of Lao-Tzu, a Chinese philosopher who wrote the Tao Te Ching, a book of verses that outlines the principles of Taoism. The term 'Tao' is also used to refer to the same concept, and is derived from the same Chinese characters as Taoism.