  We present the two--point correlation function (2PCF) of narrow-line active
galactic nuclei (AGN) selected within the First Data Release of the Sloan
Digital Sky Survey. Using a sample of 13605 AGN in the redshift range 0.055 < z
< 0.2, we find that the AGN auto--correlation function is consistent with the
observed galaxy auto--correlation function on scales 0.2h^{-1}Mpc to
>100h^{-1}Mpc. The AGN hosts trace an intermediate population of galaxies and
are not detected in either the bluest (youngest) disk--dominated galaxies or
many of the reddest (oldest) galaxies. We show that the AGN 2PCF is dependent
on the luminosity of the narrow [OIII] emission line (L_{[OIII]}), with low
L_{[OIII]} AGN having a higher clustering amplitude than high L_{[OIII]} AGN.
This is consistent with lower activity AGN residing in more massive galaxies
than higher activity AGN, and L_{[OIII]} providing a good indicator of the
fueling rate. Using a model relating halo mass to black hole mass in
cosmological simulations, we show that AGN hosted by ~ 10^{12} M_{odot} dark
matter halos have a 2PCF that matches that of the observed sample. This mass
scale implies a mean black hole mass for the sample of M_{BH} ~ 10^8 M_{odot}.
