The fuzzy Potts model arises by taking the q-state Potts model, then identifying r of the Potts spins with the fuzzy spin 0, and the remaining q.r Potts spins with the fuzzy spin 1. Here we extend a result of Chayes by showing that the fuzzy Potts model has positive correlations. We also give an application to the percolation-theoretic behavior of the Potts model on Z2.