How did the threefold distinction of Deacon, Priest and Bishop come about?

I was reading in another question, and I've heard it said before, that in the early church (Apostolic era), there was not a clear-cut distinction between Deacon, Priest and Bishop in the sacrament of Holy Orders. So I suppose that if an apostle laid his hands on you and gave you holy orders, you became equal to the apostle in fundamental power and teaching authority. Priests were considered the equal to bishops and deacons. Perhaps all of that is just a myth in which case please correct me with sources. If not, I'm wondering when and how (and why) the church evolved it's theology of Holy Orders such that there is the threefold distinction between Deacon, Priest and Bishop. This is a history question, so anyone is welcome to answer. But if I absolutely *must* scope it down, then please keep it to the Catholic view only