The cumulative hierarchy is defined by transfinite recursion:
This recursion on ordinals is available without assuming the Axiom of foundation for all sets. The stages are increasing and transitive, by transfinite induction using their definitions.
Work internally in the specified model of ZF without the Axiom of foundation, and assume the membership induction theorem. Apply it to
Suppose every member of lies in some stage. Assign to each such the least ordinal for which . The Axiom schema of replacement gives a set of these ordinals, and let be their supremum, taking for the empty collection. Monotonicity gives , and therefore .
This proves progressivity of , so membership induction gives it for every set of the model. Every stage already consists of sets in that model. Consequently
The equality is internal to the given model; its ordinals and power sets are computed there.
Assume a nonempty set has no membership-minimal element, so for every there is . Consider the formula .
It is progressive: if every element of is outside but , the assumed absence of a minimal element supplies , contradicting that hypothesis. The membership induction theorem therefore implies for every set . This contradicts .
Thus every nonempty set contains an element with , exactly the Axiom of foundation:
Only the induction schema and elementary set reasoning were needed; no prior use of Axiom of foundation occurs in the proof.

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