The Chalice is actually used more today than its direct descendant, the Cauldron. The Chalice has the same attributes and is used in many of the same ways as the Cauldron, (minus the cooking parts). This is, again, an example of witches using what they had and what would not get them burned at the stake. During those dark years, everyone had drinking vessels, but not everyone had cauldrons. Witches just used their chalices for more than just quenching thirst.
The chalice is feminine in nature and represents the Goddess, fertility and femininity. It is a tool of the West and associated with Water. It is used during ritual as the vessel to hold the wine for the 'cakes and ale' libation for the God and the Goddess.