A watercraft for transportation and exercise including a boat having an opening therein for permitting a person to be partially below the waterline and partially above the waterline. A sub-frame is operatively attached to the boat, the sub-frame having a lower position and an upper position. A propulsion device is operatively attached to the sub-frame for propelling the watercraft forwardly in response to movement of the person's feet, the propulsion device having a foot contact portion. The foot contact portion of the propulsion device being disposed a predetermined distance from the waterline when using the propulsion device in the transportation mode, the foot contact portion of the propulsion device being disposed in the water and a substantial distance below the predetermined distance when the propulsion device is being used in an exercise mode.