The aim of this research is to analyze the impact of locus of control on employee's job satisfaction and employees performance. The variables of this research are internal locus of control, external locus of control, job satisfaction, and performance of employees. This is an explanatory research with quantitative approach. The scope of this research is identified as all the employees of Perusahaan Daerah Air Minum (PDAM) Malang Area, with the number of sample are 79 employees. That sample is obtained by using Slovin formula. Data is collected directly from respondents using a questionnaire research instruments. Data analysis include descriptive analysis and path analysis which were processed using SPSS v 22.00. The research shows that internal locus of control significantly influence employee's job satisfaction and employees performance, external locus of control has negative and not significant influence toward employee's job satisfaction and employees performance, employee's job satisfaction has no significant influence toward employees performance. The direct effect of internal locus of control toward employees performance is greater than indirect effect through employee's job satisfaction and employee's job satisfaction was not mediated the relation between internal locus of control toward employees performance, so do the external locus of control toward employees performance.