UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number:      811-10339                    

          BlackRock Municipal Income Trust          
(Exact name of registrant as specified in charter)

100 Bellevue Parkway, Wilmington, DE  19809 
(Address of principal executive offices)  (Zip code) 

Robert S. Kapito, President

BlackRock Municipal Income Trust

                                                  40 East 52nd Street, New York, NY 10022                                             
(Name and address of agent for service)

Registrant's telephone number, including area code:      888-825-2257                    

Date of fiscal year end:      October 31, 2005                         

Date of reporting period:      July 31, 2005                         

Item 1. Schedule of Investments.

The Registrant’s unaudited schedule of investments as of the close of the reporting period pursuant to Rule 30b1-5 under the Investment Company Act of 1940 is as follows:

 

PORTFOLIO OF INVESTMENTS (unaudited)
JULY 31, 2005

BlackRock Municipal Income Trust (BFK)

  Principal        
    Amount     Option Call  
Rating1   (000)   Description Provisions2   Value
      LONG-TERM INVESTMENTS—162.6%    
        Alabama—3.5%    
Baa2   $    7,000   Courtland Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj., 6.15%, 6/01/19 08/05 @ 102   $        7,184,450
A2   15,000   Huntsville Hlth. Care Auth., GO, Ser. B, 5.75%, 6/01/32 06/12 @ 101   16,146,450
              23,330,900
        Arizona—1.2%    
A3   7,000   Scottsdale Ind. Dev. Auth., Scottsdale Hlth. Care Proj., 5.80%, 12/01/31 12/11 @ 101   7,568,680
        California—28.2%    
Aaa   6,750   East Bay Mun. Util. Dist. Wtr. Sys. Rev., Ser. A, 5.00%, 6/01/35, MBIA 06/15 @ 100   7,152,840
AA+   4,455   Educ. Fac. Auth. Rev., Univ. So. CA Proj., 5.00%, 10/01/33 10/15 @ 100   4,728,136
        Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev.,    
BBB-   54,635       Zero Coupon, 1/15/32 01/10 @ 27.37   11,407,788
BBB-   20,535       Zero Coupon, 1/15/34 01/10 @ 24.228   3,794,047
BBB-   75,000       Zero Coupon, 1/15/38 01/10 @ 19.014   10,833,750
        Golden St. Tobacco Sec. Corp.,    
BBB   10,000       Ser. A-1, 6.625%, 6/01/40 06/13 @ 100   11,375,700
A-   30,600       Ser. B, 5.50%, 6/01/43 06/13 @ 100   33,922,548
A-   16,500       Ser. B, 5.625%, 6/01/38 06/13 @ 100   18,488,910
A-   16,905   Golden St. Tobacco Sec. Corp. Tobacco Settlement Rev., Ser. A, 5.00%, 6/01/45 06/15 @ 100   17,358,730
A3   16,905   Hlth. Fac. Fin. Auth. Rev., Cedars Sinai Med Center Proj., 5.00%, 11/15/34 11/15 @ 100   17,340,642
NR   3,500   Lincoln Spl. Tax, Cmnty. Facs. Dist., 6.00%, 9/01/34 09/13 @ 102   3,759,945
B-   14,805   Los Angeles Regl. Arpt. Impvt. Corp. Lease Rev., Amer. Airlines, Inc. Proj., Ser. C,    
            7.50%, 12/1/24 12/12 @ 102   15,825,805
AAA   13,320   Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Facs. Laxfuel Corp., L.A. Intl.,    
            5.50%, 1/01/32, AMBAC 01/12 @ 100   14,054,065
NR   5,000   Murrieta Cmnty. Facs. Dist., Spl. Tax No. 2, The Oaks Impvt. Area A, 6.00%, 9/01/34 09/14 @ 100   5,147,700
A   5,000   Statewide Cmnty. Dev. Auth., Mem. Hlth. Svcs. Proj., Ser. A, 5.50%, 10/01/33 04/13 @ 100   5,297,400
BBB+   6,000   Statewide Cmntys., Daughters of Charity Hlth., Ser. A, 5.00%, 7/01/39 07/15 @ 100   6,107,700
              186,595,706
        Colorado—0.6%    
BBB   3,500   Denver Hlth. & Hosp. Auth., Hlth. Care Rev., Ser. A, 6.00%, 12/01/31 12/11 @ 100   3,660,545
        District of Columbia—6.3%    
        Dist. of Columbia, Georgetown Univ., Ser. A, MBIA,    
AAA   15,600       Zero Coupon, 4/01/36 04/11 @ 22.875   2,686,320
AAA   51,185       Zero Coupon, 4/01/37 04/11 @ 21.546   8,297,600
A   2,390   Friendship Pub. Charter Sch., Inc. Proj., 5.25%, 6/01/33, ACA 06/14 @ 100   2,454,363
BBB   25,535   Tobacco Settlement Fin. Corp., 6.75%, 5/15/40 05/11 @ 101   28,437,819
              41,876,102
        Florida—11.6%    
NR   3,000   Amelia Nat. Cmnty. Dev. Dist., Cap. Impvt., Ser. A, 6.30%, 5/01/35 05/14 @ 101   3,125,340
NR   4,000   Bellalago Edu. Fac. Benefits Dist., Ser. B, 5.80%, 5/01/34 05/14 @ 100   4,097,160
NR   4,000   Bridgewater Cmnty. Dev. Dist., Florida Spl. Assmt., Ser. A, 6.00%, 5/01/35 05/12 @ 101   4,106,720
NR   2,000   CFM Cmnty. Dev. Dist., Cap. Impvt., Ser. A, 6.25%, 5/01/35 05/14 @ 101   2,122,300
NR   3,000   City Ctr. Cmnty. Dev. Dist. Spec. Assess. Rev., Ser. A, 6.125%, 5/01/36 05/15 @ 101   2,976,930
Baa2   4,600   Escambia Cnty., PCR, Champion Intl. Corp. Proj., 6.40%, 9/01/30 09/06 @ 102   4,756,722
NR   2,000   Heritage Isle At Viera Cmnty. Dev. Dist., Spl. Assmt., Ser. A, 6.00%, 5/01/35 05/12 @ 101   2,059,720
A+   9,670   Highlands Cnty. Hlth. Facs. Auth., Hosp. Adventist/Sunbelt Proj., Ser. A, 6.00%, 11/15/31   11/11 @ 101   10,550,744
BBB-   9,000   Martin Cnty. Indl. Dev. Auth., Indiantown Cogeneration Proj., Ser. A, 7.875%, 12/15/25 08/05 @ 102   9,272,700
BB+   11,685   Miami Beach Hlth. Facs. Auth., Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21 11/14 @ 100   13,130,785
NR   3,970   Stevens Plantation Cmnty. Dev. Dist., Spl. Assmt. Rev., Ser. A, 7.10%, 5/01/35 05/14 @ 100   4,113,833
NR   10,000   Vlg. Cmnty. Dev. Dist. No. 6 Spl. Assmt. Rev., 5.625%, 5/01/22 05/13 @ 100   10,242,200
        World Commerce Cmnty. Dev. Dist.,    
NR   4,000       Ser. A-1, 6.50%, 5/01/36 05/14 @ 101   4,186,640
NR   1,750       Ser. A-2, 6.125%, 5/01/35 05/14 @ 101   1,829,800
              76,571,594

1

BlackRock Municipal Income Trust (BFK) (continued)

  Principal        
    Amount     Option Call  
Rating1   (000)   Description Provisions2   Value
      Georgia—2.2%    
AAA   $    9,700   Atlanta Arpt. Passenger Fac., Ser. C, 5.00%, 1/01/33, FSA 07/14 @ 100   $     10,168,607
BBB   4,000   Richmond Cnty. Dev. Auth., Env. Impvt. Rev., Intl. Paper Co. Proj., Ser. A, 6.00%, 2/01/25    02/12 @ 101   4,239,760
              14,408,367
        Hawaii—0.5%    
AAA   3,345   Honolulu City & County Wastewtr. Sys. Rev., Ser. A, 5.00%, 7/01/35, FGIC 07/15 @ 100   3,529,443
        Idaho—2.7%    
AAA   16,970 3 Univ. of Idaho, Student Fee Hsg. Impvt. Proj., 5.40%, 4/01/41, FGIC 04/11 @ 100   17,941,702
        Illinois—16.4%    
        Bolingbrook, Ser. B, FGIC,    
AAA   7,120       Zero Coupon, 1/01/33 No Opt. Call   1,834,041
AAA   14,085       Zero Coupon, 1/01/34 No Opt. Call   3,453,079
NR   4,630   Centerpoint Intermodal Ctr. Prog. Trust, Ser. A, 8.00%, 6/15/23 No Opt. Call   4,719,683
        Dev. Fin. Auth.,    
A2   25,000       PCR, Ser. C, 5.95%, 8/15/26 12/06 @ 101   25,699,250
A+   7,145       Hosp. Rev., Adventist Hlth. Sys. Sunbelt Oblig. Proj., 5.65%, 11/15/24 11/09 @ 101   7,514,682
        Edl. Facs. Auth., Student Hsg. Rev., Edl. Advancement Fund Univ. Ctr. Proj.,    
Baa2   10,000       6.25%, 5/01/30 05/12 @ 101   10,731,400
Baa2   7,000       6.25%, 5/01/34 05/07 @ 100   7,221,690
        Edl. Facs. Auth. Revs., Ser. A,    
Aa1   760       Bal Union Chicago Proj., 5.25%, 7/01/41 07/11 @ 101   805,076
Aa1   315 4     Univ. Chicago Proj., 5.25%, 7/01/11 N/A   348,897
AA+   3,700   Fin. Auth., Northwestern Mem. Hosp. Proj., Ser. A, 5.50%, 8/15/43 08/14 @ 100   3,992,041
        Fin. Auth. Student Hsg., MJH Ed. Asst. IV Proj.,    
Baa2   2,100       Ser. A, 5.125%, 6/01/35 06/14 @ 100   2,100,588
Baa3   1,675       Ser. B, 5.375%, 6/01/35 06/14 @ 100   1,675,452
BB+   1,685   Finance Auth. Rev., Friendship Village Schaumburg Proj., Ser. A, 5.625%, 2/15/37 02/15 @ 100   1,683,450
        Hlth. Facs. Auth., Elmhurst Mem. Hlth. Care Proj.,    
A2   5,000       5.50%, 1/01/22 01/13 @ 100   5,292,550
A2   6,000       5.625%, 1/01/28 01/13 @ 100   6,347,520
AAA   40,000   Met. Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion Proj.,    
            Ser. A, Zero Coupon, 12/15/34, MBIA No Opt. Call   9,680,800
        O’Hare Intl. Arpt.,    
AAA   3,000       Ser. A, 5.00%, 1/01/29, MBIA 01/15 @ 100   3,139,710
AAA   4,000       Ser. A, 5.00%, 1/01/30, MBIA 01/15 @ 100   4,176,880
AAA   7,645       Ser. C-2, 5.25%, 1/01/30, FSA 01/14 @ 100   8,047,968
              108,464,757
        Indiana—7.1%    
A+   9,000   Hlth. Fac. Fin. Auth., Methodist Hosp., Inc. Proj., 5.50%, 9/15/31 09/11 @ 100   9,315,540
BBB   7,500   Indianapolis Arpt. Auth., FedEx Corp. Proj., 5.10%, 1/15/17 No Opt. Call   7,830,750
        Petersburg, PCR, Pwr. & Lt. Conv.,    
Baa2   10,000       5.90%, 12/01/24 08/11 @ 102   10,568,900
Baa2   16,000       5.95%, 12/01/29 08/11 @ 102   16,857,440
NR   2,545   Vincennes Econ. Dev., Southwest Indiana Regl. Youth Proj., 6.25%, 1/01/24 01/09 @ 102   2,521,968
              47,094,598
        Kentucky—1.4%    
AAA   9,060   Hsg. Corp., Hsg. Rev., Ser. F, 5.45%, 1/01/32 07/11 @ 100   9,360,973
        Louisiana—4.5%    
        Local Gov’t. Env. Facs. & Cmnty. Dev. Auth.,    
A   21,425       Cap. Projs. & Equip. Acquisition, 6.55%, 9/01/25, ACA No Opt. Call   24,709,024
Baa1   4,605       Oakleigh Apts. Proj., Ser. A, 6.375%, 6/01/38 06/13 @ 102   4,716,902
              29,425,926
        Maryland—0.7%    
Baa1   4,205   Hlth. & Higher Edl. Facs. Auth., Medstar Hlth. Proj., 5.50%, 8/15/33 08/14 @ 100   4,374,840
        Massachusetts—5.1%    
AAA   25,200   Massachusetts St. School Bldg. Auth. Ded. Sales Tax Rev., Ser. A, 5.00%, 8/15/30, FSA    08/15 @ 100   26,667,144
AAA   6,750   Tpke. Auth. Met. Hwy. Sys. Rev., Ser. A, 5.00%, 1/01/37, MBIA 01/07 @ 102   6,947,842
              33,614,986
        Michigan—2.9%    
AA   17,210 4 Kent Hosp. Fin. Auth., Spectrum Hlth. Proj., Ser. A, 5.50%, 1/15/11 N/A   19,302,220

2

BlackRock Municipal Income Trust (BFK) (continued)

  Principal        
    Amount     Option Call  
Rating1   (000)   Description Provisions2   Value
      Mississippi—3.0%    
A2   $ 18,680   Gulfport Hosp. Fac., Mem. Hosp. Gulfport Proj., Ser. A, 5.75%, 7/01/31 07/11 @ 100   $     19,740,464
        Multi-State—7.0%    
        Charter Mac Equity Issuer Trust,    
A3   1,000 5     Ser. A, 6.625%, 6/30/49 06/09 @ 100   1,072,370
A3   11,000 5     Ser. A-2, 6.30%, 6/30/49 06/09 @ 100   11,669,460
A3   16,000 5     Ser. A-3, 6.80%, 10/31/52 10/14 @ 100   17,996,000
Baa1   6,500 5     Ser. B-1, 6.80%, 11/30/50 11/10 @ 100   7,043,660
A3   8,000 5 MuniMae TE Bond Subsidiary, LLC, Ser. A, 6.875%, 6/30/49 06/09 @ 100   8,605,360
              46,386,850
        New Hampshire—0.6%    
A+   3,500   Hlth. & Edl. Facs. Auth., Exeter Hosp. Proj., 5.75%, 10/01/31 10/11 @ 101   3,724,525
        New Jersey—9.6%    
        Econ. Dev. Auth.,    
B   31,410       Continental Airlines, Inc. Proj., 7.00%, 11/15/30 11/10 @ 101   30,960,209
Baa3   8,000       Kapkowski Rd. Landfill Proj., 6.50%, 4/01/28 No Opt. Call   9,351,040
BBB   18,500   Econ. Dev. Auth. Cigarette Tax Rev., 5.75%, 6/15/29 06/14 @ 100   19,732,655
NR   3,680   Middlesex Cnty. Imprvt. Auth., Heldrich Ctr. Hotel Proj., Ser. B, 6.25%, 1/01/37 01/15 @ 100   3,640,513
              63,684,417
        New York—3.6%    
AAA   5,375   Env. Facs. Corp., Clean Wtr. & Drinking Wtr. Rev., NYC Mun. Wtr. Proj., Ser. B,    
            5.00%, 6/15/31 06/12 @ 100   5,619,132
AAA   7,115   Met. Transp. Auth., Svc. Contract, Ser. A, 5.00%, 7/01/30, AMBAC 07/12 @ 100   7,427,064
        Sales Tax Asset Receivable Corp., Ser. A, AMBAC,    
AAA   7,000       5.00%, 10/15/29 10/14 @ 100   7,439,740
AAA   3,360       5.00%, 10/15/32 10/14 @ 100   3,565,800
              24,051,736
        Ohio—2.9%    
Baa2   14,500   Air Quality Dev. Auth., PCR, Cleveland Elec. Illuminating Co. Proj., Ser. B, 6.00%, 8/01/20 08/07 @ 102   15,385,080
NR   3,760   Pinnacle Cmnty. Infrastructure, Fin. Auth., Ser. A, 6.25%, 12/01/36 12/14 @ 101   3,901,075
              19,286,155
        Oklahoma—1.2%    
B-   7,175   Tulsa Mun. Arpt. Trust, Ser. A, 7.75%, 6/01/35 No Opt. Call   7,667,277
        Pennsylvania—7.6%    
A3   6,500   Econ. Dev. Fin. Auth., Amtrak Proj., Ser. A, 6.375%, 11/01/41 05/11 @ 101   7,023,575
BB-   19,750   Econ. Dev. Fin. Auth. Exempt Facs. Rev., Reliant Energy Conv. Proj., Ser. A, 6.75%, 12/01/36    12/09 @ 103   21,257,715
        Higher Edl. Facs. Auth.,    
BBB   4,000       La Salle Univ. Proj., 5.50%, 5/01/34 05/13 @ 100   4,224,000
A   17,250 4     Univ. of Pennsylvania Hlth. Svcs. Proj., Ser. A, 5.75%, 1/01/06 N/A   17,632,777
              50,138,067
        South Carolina—4.8%    
        Jobs Econ. Dev. Auth. Hosp. Facs. Rev., Palmetto Hlth. Alliance Proj.,    
BBB+   5,075       Ser. A, 6.25%, 8/01/31 08/13 @ 100   5,544,742
BBB+   9,000       Ser. C, 6.875%, 8/01/27 08/13 @ 100   10,247,040
        Lexington Cnty. Hlth. Svcs. Dist., Hosp. Rev.,    
A   5,000       5.50%, 11/01/32 11/13 @ 100   5,323,150
A   10,000       5.75%, 11/01/28 11/13 @ 100   10,895,400
              32,010,332
        Tennessee—1.5%    
AAA   20,825   Knox Cnty. Hlth. Edl. & Hsg. Facs. Brd., Hosp. Facs. Rev., Ser. A, Zero Coupon,    
            1/01/20, FSA 01/13 @ 67.474   9,787,334
        Texas—13.4%    
        Affordable Hsg. Corp., Multi-Fam. Hsg. Rev., Ser. B,    
BB-   6,445   So. Texas Pptys. Corp., 8.00%, 3/01/32 09/12 @ 102   6,113,147
C   4,435 6 Amer. Oppty. Hsg. Portfolio, 8.00%, 3/01/32 09/12 @ 102   1,330,500
        Affordable Hsg. Corp. Multi-Fam. Hsg. Rev.,    
Ba3   6,010       5.80%, 11/01/26 11/11 @ 102   4,781,856
Ba3   18,605       Arborstone/Baybrook Oaks Proj., Ser. A, 5.85%, 11/01/31 11/11 @ 102   14,541,482
BBB   945   Brazos River Auth., PCR, TXU Elec. Co. Proj., Ser. C, 6.75%, 10/01/38 10/13 @ 101   1,049,838
AAA   3,805   Dallas Area Rapid Trans., 5.00%, 12/01/31, AMBAC 12/11 @ 100   3,931,783

3

BlackRock Municipal Income Trust (BFK) (continued)

  Principal        
    Amount     Option Call  
Rating1   (000)   Description Provisions2   Value
      Texas—(continued)    
AAA   $    2,875   Harlandale Indpt. Sch. Dist., Refdg., 5.00%, 8/15/35 08/15 @ 100   $        3,018,434
        Harris Cnty. Houston Sports Auth., MBIA,    
AAA   12,580       Ser. A, Zero Coupon, 11/15/38 11/30 @ 61.166   2,085,890
AAA   26,120       Ser. A-3, Zero Coupon, 11/15/37 11/24 @ 46.545   4,492,379
AAA   5,000       Ser. H, Zero Coupon, 11/15/35 11/31 @ 78.178   1,006,350
        Tpke. Auth., Central Sys. Rev., AMBAC,    
AAA   35,000       Zero Coupon, 8/15/32 08/12 @ 30.846   7,806,400
AAA   62,325       Zero Coupon, 8/15/33 08/12 @ 28.997   13,058,334
AAA   65,040       Zero Coupon, 8/15/34 08/12 @ 27.31   12,834,993
AAA   11,995   University Texas Permanent University Fund, Series B, Refunding Series B, 5.00%, 7/01/35    07/15 @ 100   12,666,360
              88,717,746
        Virginia—0.3%    
AAA   8,105   Transp. Brd. Trust, Zero Coupon, 4/01/32, MBIA 04/12 @ 34.99   2,021,144
        Washington—3.5%    
A-   2,190 4 Energy Northwest Wind Proj., Ser. B, 6.00%, 1/01/07 N/A   2,347,811
AAA   9,275   Port Seattle Rev., Ser. A, 5.00%, 3/01/35, MBIA 03/15 @ 100   9,720,571
AAA   10,170   Port Seattle Rev., Ser. A, 5.00%, 3/01/30, MBIA 03/15 @ 100   10,707,383
              22,775,765
        West Virginia—0.3%    
AAA   2,070   Econ. Dev. Auth., Correctional Juvenile Safety, Ser. A, 5.00%, 6/01/29, MBIA 06/14 @ 100   2,178,489
        Wisconsin—5.9%    
        Hlth. & Edl. Facs. Auth.,    
A-   7,500       Aurora Hlth. Care Proj., 6.40%, 4/15/33 04/13 @ 100   8,320,275
AA-   13,750       Froedert & Cmnty. Hlth. Oblig., 5.375%, 10/01/30 10/11 @ 101   14,307,975
A   15,000       Wheaton Franciscan Svcs., 5.75%, 8/15/30 02/12 @ 101   16,031,250
              38,659,500
        Puerto Rico—2.5%    
BBB-   52,775   Childrens Trust Fund Tobacco Settlement Rev., Ser. A, Zero Coupon, 5/15/50 05/15 @ 11.191   3,350,157
BBB+   12,465   Comnwlth Infra. Fin. Auth. Spl. Tax Rev., Ser. B, 5.00%, 7/01/41 07/15 @ 100   12,988,779
              16,338,936
        Total Long-Term Investments (cost $1,013,187,528)     1,074,290,076
        SHORT-TERM INVESTMENTS—3.0%    
        Idaho—1.2%    
A1+   8,000 7 Hlth. Fac. Auth. Rev., St. Lukes Reg. Med. Ctr. Proj., 2.24%, 8/01/05, FSA, FRDD N/A   8,000,000
        Texas—0.9%    
A1+   5,800 7 Texas Water Dev. Board Rev., 2.33%, 8/01/05, FRDD N/A   5,800,000
        Puerto Rico—0.0%    
A-1   100 7 Puerto Rico Gov’t. Dev. Bank, 2.23%, 08/03/05, MBIA, FRWD N/A   100,000

4

BlackRock Municipal Income Trust (BFK) (continued)

           
    Shares        
    (000)   Description     Value
        Money Market Funds—0.9%    
    5,750   AIM Tax Free Investment. Co. Cash Reserve Portfolio     $     5,750,000
        Total Short-Term Investments (cost $19,650,000)     19,650,000
        Total Investments—165.6% (cost $1,032,837,5288)     1,093,940,076
        Liabilities in excess of other assets (including $70,611,313 of investment
    purchase payable)—(8.8)%		     (58,086,605)
        Preferred stock at redemption value, including dividends payable—(56.8)%     (375,236,397)
        Net Assets Applicable to Common Shareholders—100%     $    660,617,074

1   Using the higher of Standard & Poor’s, Moody’s Investor Service or Fitch Ratings.  
2   Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.  
3   Security, or a portion thereof, pledged as collateral with a value of $4,359,751 on 2,433 short U.S. Treasury Note futures contracts expiring September 2005. The value of such contracts on July 31, 2005 was $270,024,984, with an unrealized gain of $1,344,650.  
4   This bond is prefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par.  
5   Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of July 31, 2005, the Trust held 7.0% of it nets assets, with a current market value of $46,386,850, in securities restricted as to resale.  
6   Illiquid security representing 0.2% of net assets.  
7   For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted.  
8   Cost for Federal income tax purposes is $1,032,806,490. The net unrealized appreciation on a tax basis is $61,133,586, consisting of $70,399,410 gross unrealized appreciation and $9,265,824 gross unrealized depreciation. 

KEY TO ABBREVIATIONS

ACA —   American Capital Access   FSA —   Financial Security Assurance  
AMBAC —   American Municipal Bond Assurance Corp.   GO —   General Obligation  
FGIC —   Financial Guaranty Insurance Co.   MBIA —   Municipal Bond Insurance Assoc.  
FRDD —   Floating Rate Daily Demand   PCR —   Pollution Control Revenue  
FRWD —   Floating Rate Weekly Demand    



5

Item 2. Controls and Procedures.

(a) The Registrant's principal executive and principal financial officers have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded, as of that date, that the Registrant’s disclosure controls and procedures were reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-Q was recorded, processed, summarized, and reported within the required time periods and that information to be disclosed by the Registrant in this Form N-Q was accumulated and communicated to the Registrant’s management , including it principle executive and principle financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a -3(d)) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 3. Exhibits.

Separate certifications of the registrant’s principal executive and financial officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached as EX-99.CERT.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)          BlackRock Municipal Income Trust                                        

By: /s/ Henry Gabbay                                                  
Name: Henry Gabbay
Title: Treasurer
Date: September 28, 2005

     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By: /s/ Robert S. Kapito                                                  
Name: Robert S. Kapito
Title: Principal Executive Officer
Date: September 28, 2005

By: /s/ Henry Gabbay                                                  
Name: Henry Gabbay
Title: Principal Financial Officer
Date: September 28, 2005