If there is to be peace in the world,
There must be peace in the nations.
If there is to be peace in the nations,
There must be peace in the cities.
If there is to be peace in the cities,
There must be peace between neighbors.
If there is to be peace between neighbors,
There must be peace in the home.
If there is to be peace in the home,
There must be peace in the heart.
—Anonymous

Note from the WorshipWeb team:

This quotation is attributed to Laozi (also transliterated as “Lao-Tse”) in many places, including in Singing the Living Tradition, where it appears as reading #602. Some attributions more specifically mention the Tao Te Ching as a source. The quotation does not seem similar to anything found in the Tao Te Ching, whose text you can read in Chinese and English, and we have seen no evidence that the quotation was written by Laozi.

On the other hand, it is similar in structure to the Great Learning, one of the Four Books of Confucianism. Here is the relevant passage in the English translation from the Chinese Text Project:

The ancients who wished to illustrate illustrious virtue throughout the kingdom, first ordered well their own states. 
Wishing to order well their states, they first regulated their families. 
Wishing to regulate their families, they first cultivated their persons. 
Wishing to cultivate their persons, they first rectified their hearts. 
Wishing to rectify their hearts, they first sought to be sincere in their thoughts. 
Wishing to be sincere in their thoughts, they first extended to the utmost their knowledge. 
Such extension of knowledge lay in the investigation of things. 
Things being investigated, knowledge became complete. 
Their knowledge being complete, their thoughts were sincere. 
Their thoughts being sincere, their hearts were then rectified. 
Their hearts being rectified, their persons were cultivated. 
Their persons being cultivated, their families were regulated. 
Their families being regulated, their states were rightly governed. 
Their states being rightly governed, the whole kingdom was made tranquil and happy. 

In summary, we have found no evidence that the “Peace in the Heart” quotation was written by Laozi, who was Daoist; instead, it may have been inspired by this Confucian text. And yet it is different enough from the Great Learning that it cannot be said to be even a loose translation of that. We feel it is best attributed to Anonymous.