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, 2006     
Date of reporting period:     July 31, 2006     

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, 2006

BlackRock Municipal Income Trust (BFK)

Principal        
  Amount   Option Call    
Rating1 (000) Description Provisions2   Value  
    LONG-TERM INVESTMENTS—153.8%      
      Alabama—2.7%      
AAA $ 1,865   Birmingham Wtr. Wks. & Swr. Brd. RB, Ser. A, 4.50%, 1/01/35, FSA 01/16 @ 100   $   1,812,463  
A2 15,000   Huntsville Hlth. Care Auth. RB, Ser. B, 5.75%, 6/01/32 06/12 @ 101   15,947,550  
            17,760,013  
      Arizona—1.2%      
A3 7,000 3 Scottsdale Ind. Dev. Auth. RB, Scottsdale Hlth. Care Proj., 5.80%, 12/01/11 N/A   7,712,110  
      California—16.9%      
A+ 7,000   California St. GO, 5.00%, 6/01/34 12/14 @ 100   7,142,870  
      Cnty. Tobacco Sec. Agcy. RB,      
BBB- 3,385       Ser. B, Zero Coupon, 6/01/46 06/16 @ 17.602   290,636  
BB 17,855       Ser. C, Zero Coupon, 6/01/55 06/16 @ 8.9   694,917  
NR 22,825       Stanislaus Cnty., Ser. D, Zero Coupon, 6/01/55 06/16 @ 6.219   595,048  
      Foothill/Eastn. Transp. Corridor Agcy. RB,      
BBB 54,635       Toll Road, Zero Coupon, 1/15/32 01/10 @ 27.37   12,179,780  
BBB 20,535       Toll Road, Zero Coupon, 1/15/34 01/10 @ 24.228   4,048,680  
BBB 75,000       Toll Road, Zero Coupon, 1/15/38 01/10 @ 19.014   11,585,250  
      Golden St. Tobacco Sec. Corp. RB,      
AAA 10,180       5.00%, 6/01/45, AMBAC 06/15 @ 100   10,383,193  
A 5,000       Ser. A, 5.00%, 6/01/45 06/15 @ 100   5,023,400  
BBB 10,000       Ser. A-1, 6.625%, 6/01/40 06/13 @ 100   11,143,100  
NR 3,500   Lincoln ST, Cmnty. Facs. Dist., 6.00%, 9/01/34 09/13 @ 102   3,704,645  
AAA 13,320   Los Angeles Regl. Arpt. Impvt. Corp. Lease RB, Facs. Laxfuel Corp., L.A. Intl., 5.50%,      
          1/01/32, AMBAC 01/12 @ 100   13,816,836  
NR 5,000   Murrieta Cmnty. Facs. Dist. ST, No. 2, The Oaks Impvt. Area A, 6.00%, 9/01/34 09/14 @ 100   5,191,500  
A+ 5,000   Statewide Cmnty. Dev. Auth. RB Mem. Hlth. Svcs. Proj., Ser. A, 5.50%, 10/01/33 04/13 @ 100   5,226,150  
      Univ. of California RB,      
AA- 10,565       Ltd. Proj., Ser. B, 4.75%, 5/15/38 05/13 @ 101   10,571,128  
AAA 5,000       Ser. C, 4.75%, 5/15/37, MBIA 05/13 @ 101   5,022,300  
AAA 4,015   West Valley-Mission Cmnty. Coll. Dist. GO, Election 2004 A, 4.75%, 8/01/30, FSA 08/16 @ 100   4,034,031  
            110,653,464  
      Colorado—1.3%      
AAA 2,545   Colorado Springs Utils. RB Sub., Ser. C, 5.00%, 11/15/45, FSA 11/15 @ 100   2,592,134  
BBB 3,500   Denver Hlth. & Hosp. Auth., Hlth. Care RB, Ser. A, 6.00%, 12/01/31 12/11 @ 100   3,636,780  
Baa2 2,530   Park Creek Met. Dist. RB, Ppty. Tax, 5.50%, 12/01/37 12/15 @ 101   2,583,484  
            8,812,398  
      District of Columbia—6.3%      
      District of Columbia RB,      
A 2,390       Friendship Pub. Charter Sch. Income Proj., 5.25%, 6/01/33, ACA 06/14 @ 100   2,412,729  
AAA 15,600       Georgetown Univ. Proj., Ser. A, Zero Coupon, 4/01/36, MBIA 04/11 @ 22.875   2,812,992  
AAA 51,185       Georgetown Univ. Proj., Ser. A, Zero Coupon, 4/01/37, MBIA 04/11 @ 21.546   8,689,677  
BBB 25,535   Tobacco Settlement Fin. Corp. RB, 6.75%, 5/15/40 05/11 @ 101   27,525,964  
            41,441,362  
      Florida—13.9%      
NR 3,945   Bellalago Edu. Fac. Benefit Dist. SA, Ser. B, 5.80%, 5/01/34 05/14 @ 100   3,998,652  
Baa3 4,600   Escambia Cnty. PCRB, Champion Intl. Corp. Proj., 6.40%, 9/01/30 09/06 @ 102   4,703,546  
NR 1,975   Heritage Isle at Viera Cmnty. Dev. Dist. SA, Ser. A, 6.00%, 5/01/35 05/12 @ 101   2,015,962  
A+ 9,670 3 Highlands Cnty. Hlth. Facs. Auth. RB, Adventist/Sunbelt Hosp. Proj., Ser. A, 6.00%, 11/15/11 N/A   10,738,632  
      JEA RB,  
AAA 11,035       Elec. Sys., Ser. 3A, 4.75%, 10/01/34, FSA 04/10 @ 100   11,037,979  
AAA 3,070       Wtr. & Swr. Sys., Ser. A, 4.75%, 10/01/36, MBIA 04/11 @ 100   3,060,053  
AAA 2,900       Wtr. & Swr. Sys., Ser. A, 4.75%, 10/01/41, MBIA 04/11 @ 100   2,889,995  
BB+ 9,000   Martin Cnty. Indl. Dev. Auth. RB, Indiantown Cogeneration Proj., Ser. A, 7.875%, 12/15/25 08/06 @ 101   9,136,350  
BB+ 11,685   Miami Beach Hlth. Facs. Auth. RB, Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21 11/14 @ 100   13,052,846  
NR 6,000   New Port Tampa Bay Cmnty. Dev. Dist. SA, Ser. A, 5.875%, 5/01/38 05/16 @ 100   6,039,720  
AAA 10,830   Orange Cnty. Tourist Dev. Tax RB, 4.75%, 10/01/32, XLCA 10/16 @ 100   10,872,670  
NR 3,925   Stevens Plantation Cmnty. Dev. Dist. SA, Ser. A, 7.10%, 5/01/35 05/14 @ 100   4,082,824  
NR 9,545   Vlg. Cmnty. Dev. Dist. No. 6 SA, 5.625%, 5/01/22 05/13 @ 100   9,656,486  
            91,285,715  

1

BlackRock Municipal Income Trust (BFK) (continued)

Principal        
  Amount   Option Call    
Rating1 (000) Description Provisions2  
Value
 
    Georgia—0.6%      
BBB $ 4,000   Richmond Cnty. Dev. Auth. RB, Env. Impvt., Intl. Paper Co. Proj., Ser. A, 6.00%, 2/01/25 02/12 @ 101   $   4,194,640  
      Idaho—2.7%      
AAA 16,970   Univ. of Idaho RB, Student Fee Hsg. Impvt. Proj., 5.40%, 4/01/41, FGIC 04/11 @ 100   17,626,400  
      Illinois—12.9%      
NR 4,630 4 Centerpoint Intermodal Ctr. Prog. Trust TA, Ser. A, 8.00%, 6/15/23 No Opt. Call   4,643,288  
      Edl. Facs. Auth. RB,  
AA+ 760       Bal Union Chicago Proj., Ser. A, 5.25%, 7/01/41 07/11 @ 101   792,467  
BBB 10,000       Student Hsg., Edl. Advancement Fund Univ. Ctr. Proj., 6.25%, 5/01/30 05/12 @ 101   10,791,600  
BBB 7,000       Student Hsg., Edl. Advancement Fund Univ. Ctr. Proj., 6.25%, 5/01/34 05/07 @ 100   7,110,180  
      Fin. Auth. RB,      
A+ 7,145 3     Adventist Hlth. Sys. Sunbelt Oblig. Proj., 5.65%, 11/15/09 N/A   7,591,634  
BB+ 1,685       Evangelical Retirement Homes Proj., Ser. A, 5.625%, 2/15/37 02/15 @ 100   1,697,570  
AA+ 3,700       Northwestern Mem. Hosp. Proj., Ser. A, 5.50%, 8/15/43 08/14 @ 100   3,906,201  
Baa2 2,100       Student Hsg., MJH Ed. Asst. Living Proj., Ser. A, 5.125%, 6/01/35 06/14 @ 100   2,106,300  
Baa3 1,675       Student Hsg., MJH Ed. Asst. Living Proj., Ser. B, 5.375%, 6/01/35 06/14 @ 100   1,679,707  
      Hlth. Facs. Auth. RB, Elmhurst Mem. Hosp. Proj.,      
A 5,000       5.50%, 1/01/22 01/13 @ 100   5,190,950  
A 6,000       5.625%, 1/01/28 01/13 @ 100   6,246,600  
AAA 40,000   Met. Pier & Exposition Auth. RB, Dedicated St. Tax, McCormick Place Expansion Proj.,      
          Ser. A, Zero Coupon, 12/15/34, MBIA No Opt. Call   9,909,600  
AAA 10,090   Mun. Elec. Agcy. Pwr. Sply. RB, 4.50%, 2/01/35, FGIC 02/16 @ 100   9,683,070  
AAA 7,645   O’Hare Intl. Arpt. RB, Ser. C-2, 5.25%, 1/01/30, FSA 01/14 @ 100   7,900,420  
      Vlg. of Bolingbrook GO,      
AAA 7,120       Ser. B, Zero Coupon, 1/01/33, FGIC No Opt. Call   1,932,083  
AAA 14,085       Ser. B, Zero Coupon, 1/01/34, FGIC No Opt. Call   3,637,874  
            84,819,544  
      Indiana—7.1%      
A- 9,000   Hlth. Fac. Fin. Auth. RB, Methodist Hosp., Inc. Proj., 5.50%, 9/15/31 09/11 @ 100   9,216,720  
AAA 7,750   Mun. Pwr. Agcy., Pwr. Sply. Sys. RB, Ser. A, 4.50%, 1/01/32, AMBAC 01/16 @ 100   7,454,493  
      Petersburg PCRB, Indianapolis Pwr. & Lt. Conv.,  
BBB+ 10,000       5.90%, 12/01/24 08/11 @ 102   10,584,000  
BBB+ 16,000       5.95%, 12/01/29 08/11 @ 102   16,932,960  
NR 2,470   Vincennes Econ. Dev. RB, Southwest Indiana Regl. Youth Proj., 6.25%, 1/01/24 01/09 @ 102   2,412,424  
            46,600,597  
      Kentucky—1.4%      
AAA 9,060   Hsg. Corp. RB, Ser. F, 5.45%, 1/01/32 07/11 @ 100   9,275,900  
      Louisiana—1.8%      
A 10,510   Local Gov’t. Env. Facs. & Cmnty. Dev. Auth. RB, Cap. Projs. & Equip. Acquisition,      
          6.55%, 9/01/25, ACA No Opt. Call   11,527,263  
      Maryland—0.7%      
BBB+ 4,205   Hlth. & Higher Edl. Facs. Auth. RB, Medstar Hlth., Inc. Proj., 5.50%, 8/15/33 08/14 @ 100   4,365,168  
      Massachusetts—1.1%      
AA 6,770   Wtr. Res. Auth. RB, Ser. A, 5.00%, 8/01/41 08/16 @ 100   6,946,765  
      Michigan—1.6%      
AAA 1,680   Detroit Wtr. Sply. Sys. RB, Ser. C, 5.00%, 7/01/33, FSA 07/16 @ 100   1,734,281  
      St. Hosp. Fin. Auth. RB, Henry Ford Hlth. Sys. Proj.,  
A1 4,230       Ser. A, 5.00%, 11/15/38 11/16 @ 100   4,266,928  
A1 4,230       Ser. A, 5.25%, 11/15/46 11/16 @ 100   4,344,717  
            10,345,926  
      Mississippi—2.9%      
A 18,680   Gulfport Hosp. Fac. RB, Mem. Hosp. at Gulfport Proj., Ser. A, 5.75%, 7/01/31 07/11 @ 100   19,103,102  
      Missouri—0.1%      
AAA 695   Joint Mun. Elec. Util. Comm. RB, Plum Point Proj., 4.60%, 1/01/36, MBIA 01/16 @ 100   694,972  

2

BlackRock Municipal Income Trust (BFK) (continued)

Principal        
  Amount   Option Call    
Rating1 (000) Description Provisions2   Value  
    Multi-State—7.0%      
      Charter Mac Equity Issuer Trust,      
A3 $ 1,000 4     Ser. A, 6.625%, 6/30/49 No Opt. Call   $     1,057,830  
A3 11,000 4     Ser. A-2, 6.30%, 6/30/49 No Opt. Call   11,539,660  
A3 16,000 4     Ser. A-3, 6.80%, 10/01/52 No Opt. Call   17,924,800  
Baa1 6,500 4     Ser. B-1, 6.80%, 11/30/50 No Opt. Call   6,910,475  
A3 8,000 4 MuniMae TE Bond Subsidiary LLC, Ser. A, 6.875%, 6/30/49 06/09 @ 100   8,516,640  
            45,949,405  
      Nebraska—1.1%      
AA 6,990   Omaha Pub. Pwr. Dist. RB, Elec. Sys., Ser. A, 4.75%, 2/01/44 02/14 @ 100   6,869,772  
      Nevada—1.6%      
AAA 5,000   Clark Cnty. Arpt. RB, Jet Aviation Fuel Tax, Ser. C, 5.00%, 7/01/40, AMBAC 07/15 @ 100   5,122,600  
A+ 5,260   Clark Cnty. Econ. Dev. RB, Alexander Dawson Sch. Proj., 5.00%, 5/15/29 05/16 @ 100   5,308,234  
            10,430,834  
      New Hampshire—1.2%      
Aaa 4,000   Bus. Fin. Auth. PCRB, Pub. Svc. Co. Proj., Ser. B, 4.75%, 5/01/21, MBIA 06/13 @ 102   4,019,960  
A+ 3,500   Hlth. & Edl. Facs. Auth. RB, Exeter Hosp. Proj., 5.75%, 10/01/31 10/11 @ 101   3,675,910  
            7,695,870  
      New Jersey—7.4%      
      Econ. Dev. Auth. RB,      
BBB 18,500       Cigarette Tax, 5.75%, 6/15/29 06/14 @ 100   19,553,760  
B 15,410       Continental Airlines, Inc. Proj., 7.00%, 11/15/30 11/10 @ 101   15,938,717  
Baa3 8,000   Econ. Dev. Auth. SA, Kapkowski Rd. Landfill Proj., 6.50%, 4/01/28 No Opt. Call   9,462,960  
NR 3,680   Middlesex Cnty. Impvt. Auth. RB, Heldrich Ctr. Hotel Proj., Ser. B, 6.25%, 1/01/37 01/15 @ 100   3,742,781  
            48,698,218  
      New York—15.1%     
NR 1,820   Albany Indl. Dev. Agcy. RB, New Covenant Charter Sch. Proj., Ser. A, 7.00%, 5/01/35 05/15 @ 102   1,773,390  
AA- 43,015   Liberty Dev. Corp. RB, 5.25%, 10/01/35 No Opt. Call   47,110,028  
AAA 7,115   Met. Transp. Auth. RB Svc. Contract, Ser. A, 5.00%, 7/01/30, AMBAC 07/12 @ 100   7,312,441  
      New York City Indl. Dev. Agcy. RB,     
B 27,400       American Airlines, JFK Intl. Arpt. Proj., 7.75%, 8/01/31 08/16 @ 101   31,518,494  
B 5,000       American Airlines, JFK Intl. Arpt. Proj., 8.00%, 8/01/28 08/16 @ 101   5,866,300  
AAA 5,375   St. Env. Facs. Corp., St. Clean Wtr. & Drinking Wtr. RB, NYC Mun. Wtr. Proj., Ser. B,      
          5.00%, 6/15/31 06/12 @ 100   5,537,056  
            99,117,709  
      North Carolina—1.9%      
NR 12,130   Gaston Cnty. Indl. Facs. Fin. Auth. PCRB, 5.75%, 8/01/35 08/15 @ 100   12,711,876  
      Ohio—7.9%      
      Air Qual. Dev. Auth. PCRB,      
BBB 14,500       Cleveland Elec. Illuminating Co. Proj., Ser. B, 6.00%, 8/01/20 08/07 @ 102   14,999,525  
AAA 23,820       Dayton Pwr. & Lt. Co. Proj., 4.80%, 1/01/34, FGIC 07/15 @ 100   23,819,047  
NR 3,760   Pinnacle Cmnty. Infrastructure Fin. Auth. RB, Ohio Facs., Ser. A, 6.25%, 12/01/36 12/14 @ 101   3,914,837  
AAA 9,000   St. Wtr. Dev. Auth. PCRB, Dayton Pwr. & Lt. Co. Proj., Ser. A, 4.80%, 1/01/34, FGIC 07/15 @ 100   9,032,040  
            51,765,449  
      Oklahoma—1.2%      
B 7,175   Tulsa Mun. Arpt. Trust RB, Ser. A, 7.75%, 6/01/35 No Opt. Call   7,920,195  
      Pennsylvania—4.9%      
      Econ. Dev. Fin. Auth. RB,     
A3 6,500       Amtrak Proj., Ser. A, 6.375%, 11/01/41 05/11 @ 101   6,995,430  
BB- 19,750       Exempt Facs., Reliant Energy Conv. Proj., Ser. A, 6.75%, 12/01/36 12/09 @ 103   21,184,640  
BBB+ 4,000   Higher Edl. Facs. Auth. RB, La Salle Univ. Proj., 5.50%, 5/01/34 05/13 @ 100   4,171,080  
            32,351,150  
      South Carolina—4.9%      
      Jobs Econ. Dev. Auth., Hosp. Facs. RB,      
BBB+ 8,010 3     Palmetto Hlth. Alliance Proj., 6.875%, 8/01/13 N/A   9,413,672  
BBB+ 990       Palmetto Hlth. Alliance Proj., 6.875%, 8/01/27 08/13 @ 100   1,124,670  
BBB+ 5,075       Palmetto Hlth. Alliance Proj., Ser. A, 6.25%, 8/01/31 08/13 @ 100   5,454,864  
      Lexington Cnty. Hlth. Svcs. Dist., Hosp. RB,     
A 5,000       5.50%, 11/01/32 11/13 @ 100   5,249,050  
A 10,000       5.75%, 11/01/28 11/13 @ 100   10,707,300  
            31,949,556  

3

BlackRock Municipal Income Trust (BFK) (continued)

Principal        
  Amount   
Option Call
  
Rating1 (000) Description Provisions2   Value 
    Tennessee—1.5%      
AAA $    20,825   Knox Cnty. Hlth. Edl. & Hsg. Facs. Brd., Hosp. Facs. RB, Ser. A, Zero Coupon, 1/01/20, FSA 01/13 @ 67.474   $    10,129,905  
      Texas—14.3%      
      Affordable Hsg. Corp., Multi-Fam. Hsg. RB,      
NR 4,435 5     Amer. Oppty. Hsg. Portfolio, Ser. B, 8.00%, 3/01/32 09/12 @ 102   665,250  
B 6,375 5     So. Texas Pptys. Corp., Ser. B, 8.00%, 3/01/32 09/12 @ 102   5,661,128  
AAA 3,805   Dallas Area Rapid Trans. RB, 5.00%, 12/01/31, AMBAC 12/11 @ 100   3,875,963  
      Harris Cnty. Houston Sports Auth. RB,   
AAA 12,580       Ser. A, Zero Coupon, 11/15/38, MBIA 11/30 @ 61.166   2,206,909  
AAA 26,120       Ser. A-3, Zero Coupon, 11/15/37, MBIA 11/24 @ 46.545   4,755,930  
AAA 5,000       Ser. H, Zero Coupon, 11/15/35, MBIA 11/31 @ 78.178   1,072,800  
      Lower Colorado River Auth. RB,      
AAA 5 3     Ser. A, 5.00%, 5/15/13, MBIA N/A   5,331  
AAA 2,395       Ser. A, 5.00%, 5/15/31, MBIA 05/13 @ 100   2,454,324  
AAA 13,305   Lower Colorado River Auth. RB, Transm. Svcs. Proj., 4.75%, 5/15/34, AMBAC 05/11 @ 100   13,304,069  
AAA 1,700   Montgomery Cnty. Mun. Util. Dist. No. 46, Wtr. Wks. & Swr. Sys. GO, 4.75%, 3/01/30, MBIA 03/14 @ 100   1,692,775  
AAA 9,085   North Texas Tollway Auth. RB, 5.00%, 1/01/40, FSA 01/15 @ 100   9,272,151  
AAA 5,060   Pearland GO, 4.75%, 3/01/29, FGIC 03/16 @ 100   5,075,281  
      St. Tpke. Auth. RB, Central Sys.,      
AAA 35,000       Zero Coupon, 8/15/32, AMBAC 08/12 @ 30.846   8,098,650  
AAA 62,325       Zero Coupon, 8/15/33, AMBAC 08/12 @ 28.997   13,548,209  
AAA 65,040       Zero Coupon, 8/15/34, AMBAC 08/12 @ 27.31   13,305,883  
AAA 8,390       Ser. A, 5.00%, 8/15/42, AMBAC 08/12 @ 100   8,520,716  
            93,515,369  
      Virginia—0.4%      
AAA 8,105   Comnwlth. Transp. Brd. RB, Zero Coupon, 4/01/32, MBIA 04/12 @ 34.99   2,101,464  
NR 425   Suffolk Indl. Dev. Auth. RB, Lake Prince Ctr. Proj., 5.30%, 9/01/31 09/16 @ 100   420,929  
            2,522,393  
      Washington—2.0%      
A- 2,190 3 Energy Northwest RB, Wind Proj., Ser. B, 6.00%, 1/01/07 N/A   2,274,009  
AAA 680   King Cnty. Swr. GO, 5.00%, 1/01/35, FGIC 01/15 @ 100   696,381  
AAA 3,615   King Cnty. Swr. RB, 5.00%, 1/01/36, FSA 01/16 @ 100   3,710,400  
AAA 6,730   St. Hlth. Care Facs. Auth. RB, Providence Hlth. Care Svcs. Proj., Ser. A, 4.625%, 10/01/34,
    FGIC
10/16 @ 100		  
6,599,707		  
            13,280,497  
      West Virginia—0.3%      
AAA 2,070   Econ. Dev. Auth. RB, Correctional Juvenile Safety, Ser. A, 5.00%, 6/01/29, MBIA 06/14 @ 100   2,137,523  
      Wisconsin—5.9%      
      Hlth. & Edl. Facs. Auth. RB,      
A- 7,500       Aurora Hlth. Care Proj., 6.40%, 4/15/33 04/13 @ 100   8,243,025  
AA- 12,545 3     Froedtert & Cmnty. Hlth. Oblig. Grp., 5.375%, 10/01/11 N/A   13,571,808  
AA- 1,205       Froedtert & Cmnty. Hlth. Oblig. Grp., 5.375%, 10/01/30 10/11 @ 101   1,249,296  
A 15,000 3 Wheaton Franciscan Svcs., 5.75%, 8/15/30 02/12 @ 101   15,867,750  
            38,931,879  
      Total Long-Term Investments (cost $960,712,537)     1,009,142,939  
      SHORT-TERM INVESTMENTS—2.1%      
      Puerto Rico—0.0%      
A-1+ 100 6 Gov’t. Dev. Bank RB, 3.53%, 8/02/06, MBIA, FRWD N/A   100,000  
      Texas—0.0%      
A-1+ 50 6 Wtr. Dev. Board RB, 3.67%, 8/01/06, FRDD N/A   50,000  
  Shares       
  (000)       
      Money Market Fund—2.1%      
NR 13,900   AIM Tax Free Investment Co. Cash Reserve Portfolio N/A   13,900,000  
      Total Short-Term Investments (cost $14,050,000)     14,050,000  
 

4

BlackRock Municipal Income Trust (BFK) (continued)

               
      Description    
Value
 
      Total Investments—155.9% (cost $974,762,5377)     $1,023,192,939  
      Other assets in excess of liabilities—1.3%     8,249,274  
      Preferred shares at redemption value, including dividends payable—(57.2)%     (375,290,321 )
      Net Assets—100%     $ 656,151,892  

1 Using the highest of Standard & Poor’s, Moody’s Investment Services or Fitch’s 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 This bond is prerefunded. 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.  
4 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, 2006, the Trust held 7.7% of its net assets, with a current market value of $50,592,693, in securities restricted as to resale.  
5 Illiquid security. As of July 31, 2006, the Trust held 1.0% of its net assets, with a current market value of $6,326,378 in these securities.  
6 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. Rate shown is rate as of July 31, 2006.  
7 Cost for Federal income tax purposes is $974,611,988. The net unrealized appreciation on a tax basis is $48,580,951, consisting of $54,861,473 gross unrealized appreciation and $6,280,522 gross unrealized depreciation. 
  KEY TO ABBREVIATIONS
             
ACA — American Capital Access   MBIA — Municipal Bond Insurance Assoc.
AMBAC — American Municipal Bond Assurance Corp.   PCRB — Pollution Control Revenue Bond
FGIC — Financial Guaranty Insurance Co.   RB — Revenue Bond
FRDD — Floating Rate Daily Demand   SA — Special Assessment
FRWD — Floating Rate Weekly Demand   ST — Special Tax
FSA — Financial Security Assurance   TA — Tax Allocation
GO — General Obligation   XLCA — XL Capital Assurance

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 its principal executive and principal 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 and Principal Financial Officer
Date: September 27, 2006

     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: President and Principal Executive Officer
Date: September 27, 2006

By:     /s/ Henry Gabbay                                                  
Name: Henry Gabbay
Title: Treasurer and Principal Financial Officer
Date: September 27, 2006