A steering device includes a main body that attaches to a tow rope, inline between a towing vessel and a personal watercraft. The main body, which is positioned just forward of the personal watercraft, accommodates an extendable rudder that moves between a normally retracted position within the main body, and a lowered, operable position to exert a steering force on the main body and the personal watercraft. An elongate tiller extends between the rudder and a handle that is optimally positioned for grasping by the rider of the personal watercraft. In accordance with several embodiments, movement of the rudder from the relaxed, retracted position to the lowered, operable position is achieved by exerting a particular directional force on the handle (e.g., pulling, pushing forward, or lifting). Moving the handle to the left or the right achieves the desired steering action. Upon release of the handle by the rider, the rudder returns to the normally retracted position, thereby removing the steering influence.