How do I section off my basement with out using dry wall?
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Curtains? You can hang them from pipes mounted on the ceiling.
If your constructing walls building and fire codes require drywall as a smoke and fire barrier. If you just want a separation you can use bookcases, room dividers, etc.
As long as it is not extra humid, you can use Wood or Plywood or Fabric
Free standing partitions
Hang curtains
Screen panels like Shoji style
Think office cubicles
Colleen: Use room dividers! Here's a link to Hobby Lobby --- and don't forget to use a coupon (there is even a coupon app for your phone!)
https://www.hobbylobby.com/search/?text=room+dividers