There are three separate schools of Taoism, each of which emerges from a different perspective on the Tao. Philosophical Taoism, physical Taoism, and religious Taoism are the categories of modern day Taoism.
The Tao is defined as the "way." This is a somewhat ambiguous term, because it is used to define ultimacy. Tao is seen as the underlying reality, the core of reality, or the way of ultimacy. It is perceivable, but not readily describable. One of the more popular sayings within the Tao is that those who say that they know the Tao, really do not, while those who do know the Tao, do not talk about it. Another popular way of looking at the Tao is expressed by the idea that the Tao which is known is not the real Tao. In other words, by definition, Tao is mystery, unknowable, indefinable, indescribable.
At the same time, however, the Tao is viewed as representing both the norm of the natural world and the norm of human life. Again, the Tao is at the center. It is ultimacy, but it also infuses all of life, becoming immanent, or expressed in immanence. The task of the individual is to move into harmony with the Tao, to flow with the flow of the Tao in human life, in nature, and in the universe as a whole.
Philosophical Taoism expresses one aspect of that task. It is the perspective, or attitude, which one takes toward life. One of the central concepts of philosophical Taoism is wu wei, which is variously translated as inaction or pure effectiveness.
These seem to be very different concepts. Essentially, philosophical Taoism emphasized living wisely by entering into the flow of the way of the universe. The individual does not exert themselves against that flow, but lets go into it. In this sense, wu wei is inaction. The individual does not act against anything, but they become purely effective because they are in harmony with the Tao itself.
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