This paper analyzes the effectiveness of water level control using fuzzy logic. The water level in the tank is sensed using transistor switching principle. The level sensed is fed to the PIC16 microcontroller. The user provides the set point to the microcontroller through serial communication using the COM development port software, Terminal. It computes the error as the difference between the set point and the process variable. The fuzzy logic programmed in the microcontroller is applied which controls the water level in the tank using the drain and the feed pumps. Once the set point has been reached, the message along with the present level is sent back through serial communication to the user interface on a PC. Thus, the water level in the tank is controlled according to the set point given by the user. The implementation of a fuzzy level controller has many applications such as boiler drum level control, reverse osmosis plant, demineralisation plant etc.