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

                                    FORM N-PX

          ANNUAL REPORT OF PROXY VOTING RECORD OF REGISTERED MANAGEMENT
                               INVESTMENT COMPANY

                  Investment Company Act file number: 811-21187

                         PIMCO Municipal Income Fund III
               (Exact name of registrant as specified in charter)

                 1345 Avenue of the Americas, New York, NY 10105
                     (Address of Principal Executive Office)

                  Allianz Global Investors Fund Management LLC
                           1345 Avenue of the Americas
                               New York, NY 10105
                     (Name and Address of Agent for Service)

        Registrant's telephone number, including area code: 212-739-3000

                      Date of fiscal year end: September 30

          Date of reporting period: July 1, 2009 through June 30, 2010



ITEM 1. PROXY VOTING RECORD


******************************* FORM N-Px REPORT *******************************

ICA File Number: 811-21187
Reporting Period: 07/01/2009 - 06/30/2010
PIMCO Municipal Income Fund III









======================= PIMCO MUNICIPAL INCOME FUND III ========================

There is no proxy voting activity for the fund, as the fund did not hold any
votable positions during the reporting period.
========== END NPX REPORT


SIGNATURES

     Pursuant to the requirements of 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):              PIMCO Municipal Income Fund III


By (Signature and Title)*: /s/ Brian Shlissel
                           --------------------------------------------
                           Name: Brian Shlissel
                           Title: President and Chief Executive Officer

Date: August 31, 2010

*    Print the name and title of each signing officer under his or her
     signature.