By defonition, a small hand axe. Due to ignorance, this weapon is now associated with a group of demented windowlickers. Hatchets, much like retards, have been around for a very long time. They were, and still are, used as tools. Also, they symbolize a feud.
Guy: I need to cut this.
Guy2: Use my hatchet!
Juggalo: shyt, i gotz a hatchet! down wif da clown!
Juggalette: dats almost as cool as a faygo!
When putting differences/feuds aside, it is said that you are "burying the hatchet."