  The underlying mechanism of the metal-to-insulator transition (MIT) in
BaVS$_3$ is investigated, using dynamical mean-field theory in combination with
density functional theory. It is shown that correlation effects are responsible
for a strong charge redistribution, which lowers the occupancy of the broader
\a1g band in favor of the narrower $E_g$ bands. This resolves several
discrepancies between band theory and the experimental findings, such as the
observed value of the charge-density wave ordering vector associated with the
MIT, and the presence of local moments in the metallic phase.
