A water cooling apparatus in a power transmission system of a boat propulsion system includes a transmission unit that changes the speed of an output from an engine and then transmits the output to a propeller shaft. The transmission unit includes a cylindrical transmission case with an axis extending vertically, a transmission device housed in the transmission case and arranged to change the speed of an input, and a cooling water passage formed in the transmission case for flowing cooling water. In the plan sectional view of the transmission unit, the cooling water passage is formed in at least one of a side portion or a rear portion of the transmission case. As a result, strain on a rear portion of a hull that supports a boat propulsion unit is prevented and minimized, while a transmission unit is sufficiently cooled with cooling water.