Generalizing the Knizhnik-Zamolodchikov equations,we derive a hierarch
y of nonlinear Ward identities for affine-Virasoro correlators. The hi
erarchy follows from null states of the Knizhnik-Zamolodchikov type an
d the assumption of factorization, whose consistency we verify at an a
bstract level. Solution of the equations requires concrete factorizati
on ansatze, which may vary over affine-Virasoro space. As a first exam
ple, we solve the nonlinear equations for the coset constructions, usi
ng a matrix factorization. The resulting coset correlators satisfy fir
st-order linear partial differential equations whose solutions are the
coset blocks defined by Douglas.