<![CDATA[This study aims to analyze the influence of transformational leadership and the non-physical work environment on employee performance at PDAM Tirta Darma Ayu, Indramayu Regency. The study used a quantitative approach with descriptive methods. The sample consisted of 108 employees, determined using proportionate stratified random sampling. Data were collected using a questionnaire and analyzed using simple and multiple linear regression using SPSS. This study provides a theoretical contribution by enriching the literature review related to human resource management, specifically the role of transformational leadership and the non-physical work environment as variables influencing employee performance in the context of a regionally-owned drinking water company (BUMD). The results showed that transformational leadership had a positive and significant effect on employee performance (β = 0.378; p < 0.05). The non-physical work environment also had a positive and significant effect on employee performance (β = 0.294; p < 0.05). Simultaneously, both variables significantly influenced employee performance, with a coefficient of determination (R²) of 0.390, indicating that 39.0% of the variation in employee performance can be explained by transformational leadership and the non-physical work environment. The results of this study are expected to provide a basis for the management of regionally-owned drinking water companies (BUMD) in formulating policies for developing transformational leadership and creating a conducive non-physical work environment to improve employee performance. Keywords: Transformational Leadership, Non-Physical Work Environment, Employee Performance]]>
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