This paper proposes a novel control scheme of single-phase-to-three-phase pulsewidth-modulation (PWM) converters for low-power three-phase induction motor drives, where a single-phase half-bridge PWM rectifier and a two-leg inverter are used. With this converter topology, the number of switching devices is reduced to six from ten in the case of full-bridge rectifier and three-leg inverter systems. In addition, the source voltage sensor is eliminated with a state observer, which controls the deviation between the model current and the system current to be zero. A simple scalar voltage modulation method is used for a two-leg inverter, and a new technique to eliminate the effect of the dc-link voltage ripple on the inverter output current is proposed. Although the converter topology itself is of lower cost than the conventional one, it retains the same functions such as sinusoidal input current, unity power factor, dc-link voltage control, bidirectional power flow, and variable-voltage and variable-frequency output voltage. The experimental results for the V/f control of 3-hp induction motor drives controlled by a digital signal processor TMS320C31 chip have verified the effectiveness of the proposed scheme