Abstract: A filter assembly for a hydrostatic transaxle comprising a hydraulic pump and a hydraulic motor in fluid communication via porting formed in a center section. The filter assembly includes an upper filter member having a generally horizontally oriented filter media adapted to be positioned adjacent to the center section. A lower filter member is attached to the upper filter member to form a filter housing having an interior area such that make-up fluid enters the interior area substantially via the filter media. A conduit places the interior area of the filter housing in fluid communication with the porting of the center section through which make-up fluid is allowed to enter the porting of the center section.