We have obtained Chandra ACIS-S observations of NGC 6543, the Cat's Eye Neb
ula. The X-ray emission from NGC 6543 is clearly resolved into a point sour
ce at the central star and diffuse emission confined within the central ell
iptical shell and two extensions along the major axis. Spectral analysis of
the diffuse component shows that the abundances of the X-ray-emitting gas
are similar to those of the fast (1750 km s(-1)) stellar wind but not those
of the nebula. Furthermore, the temperature of this gas is similar to1.7 x
10(6) K, which is 100 times lower than the expected postshock temperature
of the fast stellar wind. The combination of low temperature and wind abund
ances is puzzling. The thermal pressure of this hot gas is about twice the
pressure in the cool nebular shell; thus, the hot gas plays an essential ro
le in the ongoing evolution of the nebula.