A hydrostatic transaxle with a bypass mechanism is disclosed, the transaxle having a center section engaged to a housing, an axial piston pump disposed on the center section and driven by an input shaft, and an axial piston motor disposed on the center section having a cylinder block engaged to a motor shaft. The pump is controlled by a swash plate having a pair of openings through which the input shaft and a bypass actuation rod pass. The bypass actuation rod has a cam formed on a first end that engages a block lift member. When the bypass actuation rod is rotated, the cam causes the block lift member to engage and lift the cylinder block of the axial piston motor off of the center section. A brake mechanism using brake puck disposed in a pocket formed in the center section is also disclosed.