Abstract: There is disclosed a motor boat having a propulsion and steering system which includes a propeller mounted on a housing which is supported from the boat transom for rotation about a generally vertical axis to steer the boat, and for reciprocation along a generally vertical axis to permit the propeller to be raised and lowered between normal operating, retracted and trim positions, and wherein a motor is mounted in the hull and connected to the propeller shaft by a drive shaft extending sealably through a hole in the hull and having joints at its opposite ends to enable the housing to be so moved.