This document describes a study of an ARM7 microcontroller-based fuzzy logic controller for controlling water level in a tank. The controller aims to improve on the performance of a conventional PID controller. A water tank system is set up with inlet and outlet valves. Water level is measured by a pressure transducer and controlled by adjusting the inlet valve opening. Fuzzy logic control algorithms are written in C and implemented on the ARM7 microcontroller. The controller is tested by subjecting it to step and step-variation inputs and its performance is compared to a PID controller based on rise time and tracking ability. Results show the fuzzy logic controller has quicker rise time and better tracking, outperforming the PID controller.