As an addendum to Joel Hamkins answer: the weaker assertion (`Transitive Containment') that every set x is contained in a transitive set (not necessarily its transitive closure) is not provable in ZF - Replacement (sometimes known as Z Zermelo-set theory). As Joel says in his answer we need to collect together the results of taking successive $\bigcup$. For this $\Sigma_1$-Replacement is more than enough (if AxFoundation is formulated in the right way for $\Pi_1$ classes).