In this paper we examine the possibilities to extend the relational data model with the mechanisms that can handle imprecise, uncertain and inconsistent attribute values using fuzzy logic and fuzzy sets. We present a fuzzy relational data model which we use for fuzzy knowledge representation in relational databases that guarantees the model in 3rd normal form. We also describe the CASE tool for the fuzzy database model development which is apparently the first implementation of such a CASE tool. In this sense, this paper presents a leap forward towards the specification of a methodology for fuzzy relational database applications development.