A small, personal watercraft powered by a four cycle internal combustion engine. The engine is provided with a dry sump lubrication system for permitting the engine to be mounted low in the hull and this dry sump lubrication system includes a lubricant tank mounted within the hull separately from, but spaced closely to, the engine. Induction and exhaust systems are provided for the engine which include position responsive valves that close when the watercraft is inverted to preclude water from entering the combustion chamber through either the intake or the exhaust system. The induction system also includes an air inlet device that has its own position responsive check valve and which provides a centrifugal separator for separating water from the air inducted into the engine.