W-types in setoids

W-types and their categorical analogue, initial algebras for polynomial endofunctors, are an important tool in predicative systems to replace transfinite recursion on well-orderings. Current arguments to obtain W-types in quotient completions rely on assumptions, like Uniqueness of Identity Proofs, or on constructions that involve recursion into a universe, that limit their applicability to a specific setting. We present an argument, verified in Coq, that instead uses dependent W-types in the underlying type theory to construct W-types in the setoid model. The immediate advantage is to have a proof more type-theoretic in flavour, which directly uses recursion on the underlying W-type to prove initiality. Furthermore, taking place in intensional type theory and not requiring any recursion into a universe, it may be generalised to various categorical quotient completions, with the aim of finding a uniform construction of extensional W-types.