The Cauchy problem for the degenerate first order equation Bu'(t) = Au(t), t greater than or equal to 0, u(0) = x, kerB not equal {0}, or the equivalent Cauchy problem for the inclusion u'(t) is an element of B-1 Au(t), t greater than or equal to 0, u(0) = x, are studied in the space of abstract distributions. Well-posedness conditions are obtained in terms distribution semigroups and integrated semigroups.