An endless water way is supported by a superstructure and includes a bottom wall and side walls extending upwardly from the bottom wall to form a trough. A pump system effects continuous forward flow of water through the trough of the waterway. A guide track is supported on the waterway above the trough. A plurality of vehicles for transporting passengers from station to station are buoyantly supported by the guide track in the waterway. The guide track maintains the vehicles at a selected depth in the waterway. Each vehicle is provided with braking apparatus for frictionally engaging the guide track of the waterway to slow and stop the vehicles. The continuous forward movement of water in the waterway forwardly propels the vehicles from station to station. A plurality of endless waterways form continuous loops that radiates outwardly from the main terminal to provide transportation around the loops to and from the main terminal. A shunting track is provided at each station for diverting the movement of the vehicles from the waterway to permit the vehicles to bypass the station or insertion and removal of the vehicles from the waterway. Conveyor devices transport the vehicles through the station at a controlled rate of speed to facilitate the boarding and departure of passengers to and from the vehicles.
