A transaxle including a hydrostatic transmission mounted in a transmission housing and having a pair of hydraulic pumps and hydraulic motors operatively connected together through a center section mounted in the housing. First and second axle housings are mounted on opposite ends of the transmission housing, with output axles mounted in the axle housings and connected to the respective hydraulic motors, and the output axles are offset so that the axes of rotation of the axles do not intersect any portion of the transmission housing.