We argue that the fundamental assertion underlying Mach's critique of Newton's first law is that inertial motion is not motion in the absence of causes; rather, it is motion whose cause lies in some homogeneous aspect of the environment. We distinguish this formal requirement (Mach's principle) from two hypotheses which Mach considers concerning the origin of inertia: that the distant stars play (1) a merely “collateral” or (2) a “fundamental” role in the causal determination of inertial motion. -/- In his (...) later writings, Mach deliberately avoids referring to the concept of causation, and indeed, this has made the interpretation of Mach's principle a subject of widespread controversy. However, in his earlier writings, the substance of Mach's critique is less ambiguously expressed. Therefore, close attention is given to Mach's early writings and the evolution of his thought. Various accounts in the secondary literature on Mach's principle, in particular those of Norton and DiSalle, are assessed on this basis. We end with a defence of the Machian status and legitimacy of the early Einstein's research program. (shrink)