The aim of this project is to design and construct microcontroller based water level indicator that would sound an alarm when the water tank is empty and light a bulb when the water tank is full. The reason is to find a way of producing low cost microcontroller based water level indicator modules that can be repaired and maintained locally. The electronic components that were used to design and construct the device were AT89C2051 Microcontroller, Quartz Crystal Oscillator, TIP 41C, Resistors, Capacitors, Copper Probes, Perforated Circuit Board, Bulb, Solid state relay and Buzzer. There are various types of microcontroller that come in different sizes and capacity. The one being implemented in this project is AT89C2051 from Atmel. The sound of alarm indicate low water level signifying water tank empty and needs to be refill. The bulb light up to indicates that the water tank is not empty, the water tank level is high (that is the water tank is full).The microcontroller based water level indicator sound an alarm when the tank is empty or the water level is low and lights a bulb when the tank is full. The result is satisfactory since the module is working and indicating that the water level is low or high (that is the tank is empty or full.