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

Name of Fund:      BlackRock Municipal Income Trust

Fund Address:     100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Robert S. Kapito, President, BlackRock Municipal Income Trust, 40
               East 52nd Street, New York, NY 10022.

Registrant’s telephone number, including area code: (888) 825-2257

Date of fiscal year end: 10/31/2007

Date of reporting period: 05/01/2007 – 07/31/2007

Item 1 – Schedule of Investments

PORTFOLIO OF INVESTMENTS (unaudited)
JULY 31, 2007
BlackRock Municipal Income Trust (BFK)
(Percentages shown are based on Net Assets)

Principal                   
Amount          
(000)
 
Description
 
Value
 
      LONG-TERM INVESTMENTS—156.2%      
      Alabama—3.7%      
$
           15,000 1 Huntsville Hlth. Care Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Ser. B, 5.75%, 6/01/12 $           16,328,400  
     
Birmingham Spl. Care Facs. Fing. Auth., Hlth., Hosp. & Nursing Home RB, Ascension Hlth. Proj.,
     
  4,545      Ser. C-2, 5.00%, 11/15/36   4,564,771   
  3,260      Ser. C-2, 5.00%, 11/15/39
 
3,269,356
 
       
 
24,162,527
 
      Arizona—2.0%      
  5,400   Phoenix & Pima Cnty. Indl. Dev. Auth., Local or Gtd. Hsg. RB, Ser. 2007-1, 5.25%, 8/01/38, AMT   5,547,258  
  7,000 1 Scottsdale Indl. Dev. Auth., Hlth., Hosp. & Nursing Home RB, Scottsdale Hlth. Care Proj., 5.80%, 12/01/11
 
7,581,420
 
       
 
13,128,678
 
      California—17.6%      
      California,      
  7,000      GO, 5.00%, 6/01/34   7,161,700  
  11,670      Misc. Taxes GO, 5.00%, 6/01/32   12,022,200  
  3,175 1 City of Lincoln, Pub. Impvts. ST, 6.00%, 9/01/13   3,560,985  
      Cnty. Tobacco Sec. Agcy., Tobacco Settlement Funded RB,      
  3,385      Ser. B, Zero Coupon, 6/01/46   349,400  
  17,855      Ser. C, Zero Coupon, 6/01/55   919,532  
  22,825      Stanislaus Cnty. Proj., Ser. D, Zero Coupon, 6/01/55   782,213  
      Foothill Eastn. Transp. Corridor Agcy., Hwy. Tolls RB,      
  54,635      Zero Coupon, 1/15/32   13,104,205  
  20,535      Zero Coupon, 1/15/34   4,360,813  
  75,000      Zero Coupon, 1/15/38   12,470,250  
      Golden St. Tobacco Sec. Corp.,      
  10,000 1    Misc. Purps. Tobacco Settlement Funded RB, Ser. A-1, 6.625%, 6/01/13   11,398,800  
  5,000      Tobacco Settlement Funded RB, Ser. A, 5.00%, 6/01/45   5,025,400  
  13,320   Los Angeles Regl. Arpts. Impvt. Corp., Lease Facs. RB, LAXfuel Corp., Los Angeles Intl. Arpt.      
         Proj., 5.50%, 1/01/32, AMBAC, AMT   13,804,448  
  5,000   Murrieta Cmnty. Facs. Dist. No. 2, Econ. Impvts. ST, The Oaks Impvt. Area A Proj., 6.00%, 9/01/34   5,261,450  
  5,000   Statewide Cmnty. Dev. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Mem. Hlth. Svcs. Proj.,      
         Ser. A, 5.50%, 10/01/33   5,181,550  
      Univ. of California, Univ. & Coll. Impvts. RB,      
  10,565      Ser. B, 4.75%, 5/15/38   10,547,251  
  5,000      Ser. C, 4.75%, 5/15/37, MBIA   5,016,950  
  4,015   West Valley-Mission Cmnty. Coll. Dist., Univ. & Coll. Impvts. Ad Valorem Ppty. Tax GO, 4.75%, 8/01/30, FSA
 
4,056,033
 
       
 
115,023,180
 
      Colorado—1.4%      
  2,545   City of Colorado Springs, Mult. Util. Impvts. RB, Ser. C, 5.00%, 11/15/45, FSA   2,616,082  
  3,500 1 Denver Hlth. & Hosp. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Ser. A, 6.00%, 12/01/11   3,788,785  
  2,530   Pk. Creek Met. Dist., Ppty. Tax Misc. RB, 5.50%, 12/01/37
 
2,628,872
 
       
 
9,033,739
 
      District of Columbia—6.5%      
      Dist. of Columbia,      
  2,390      Misc. RB, Friendship Pub. Charter Sch. Proj., 5.25%, 6/01/33, ACA   2,417,150  
  66,785 1    Univ. & Coll. Impvts. RB, Georgetown Univ. Proj., Ser. A, Zero Coupon, 4/01/11, MBIA   12,619,798  
  25,535   Tobacco Settlement Fing. Corp., Tobacco Settlement Funded RB, 6.75%, 5/15/40
 
27,287,467
 
       
 
42,324,415
 
      Florida—11.7%      
  3,890   Bellalago Edl. Facs. Benefit Dist., Sch. Impvts. SA, Ser. B, 5.80%, 5/01/34   3,926,333  
  10,830   Cnty. of Orange, Sales Tax RB, 4.75%, 10/01/32, XLCA   10,839,747  
  1,905   Heritage Isle at Viera Cmnty. Dev. Dist., Wtr. Util. Impvts. SA, Ser. A, 6.00%, 5/01/35   1,965,407  
  9,670 1 Highlands Cnty. Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home RB, Adventist Hlth. Sys./Sunbelt      
         Proj., Ser. A, 6.00%, 11/15/11   10,542,137  
      JEA,      
  11,035      Elec., Pwr. & Lt. Impvts. RB., Ser. 3A, 4.75%, 10/01/34, FSA   11,040,297  
  2,900      Wtr. Util. Impvts. Wtr. RB, Ser. A, 4.75%, 10/01/41, MBIA   2,917,081  
  9,000   Martin Cnty. Indl. Dev. Auth., Indl. RB, Indiantown Cogeneration Proj., Ser. A, 7.875%, 12/15/25, AMT  
9,086,670
  
  11,685   Miami Beach Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Mt. Sinai Med. Ctr. Proj.,      
         6.75%, 11/15/21   12,957,730  
  3,880   Stevens Plantation Cmnty. Dev. Dist., Pub. Impvts. SA, Ser. A, 7.10%, 5/01/35   4,142,366  
  8,700   Vlg. Cmnty. Dev. Dist. No. 6, Pub. Impvts. SA, 5.625%, 5/01/22
 
8,889,660
 
       
 
76,307,428
 
      Georgia—0.6%      
  4,000   Richmond Cnty. Dev. Auth., Rec. Recovery RB, Intl. Paper Co. Proj., Ser. A, 6.00%, 2/01/25, AMT
 
4,164,960
 
      Idaho—2.7%      
  16,970   Univ. of Idaho, Univ. & Coll. Impvts. RB, Student Fee Hsg. Impvt. Proj., 5.40%, 4/01/41, FGIC
 
17,688,340
 
      Illinois—13.5%      
  4,630 2 Centerpoint Intermodal Ctr. Prog. Trust TA, Ser. A, 8.00%, 6/15/23, AMT   4,665,373  
  8,225   Chicago Hsg. Auth., Local or Gtd. Hsg. RB, 5.00%, 7/01/24, FSA   8,554,658  
  7,645   Chicago O'Hare Intl. Arpt., Port, Arpt. & Marina RB, Ser. C-2, 5.25%, 1/01/30, FSA   7,900,955  
      Edl. Facs. Auth., Univ. & Coll. Impvts. RB,      
  760      Ser. A, 5.25%, 7/01/41   791,320  
  10,000 1    Student Hsg. Edl. Advancement Fund Univ. Ctr. Proj., 6.25%, 5/01/12   11,120,100  


1

BlackRock Municipal Income Trust (BFK) (continued)
(Percentages shown are based on Net Assets)

Principal                   
Amount          
(000)
 
Description
 
Value
 
      Illinois— (cont'd)       
      Fin. Auth.,      
$
 7,145 1    Cash Flow Mgmt. Hlth., Hosp. & Nursing Home RB, Adventist Hlth. Sys. Sunbelt Oblig. Proj.,      
         5.65%, 11/15/09 $           7,486,031  
  1,685      Hlth., Hosp. & Nursing Home RB, Friendship Vlg. Schaumburg Proj., Ser. A, 5.625%, 2/15/37   1,706,096  
  3,700      Hlth., Hosp. & Nursing Home RB, Northwestern Mem. Hosp. Proj., Ser. A, 5.50%, 8/15/43   3,957,557  
  2,100      Univ. & Coll. Impvts. RB, MJH Ed. Asst. LLC Proj., Ser. A, 5.125%, 6/01/35   2,073,771  
  1,675      Univ. & Coll. Impvts. RB, MJH Ed. Asst. LLC Proj., Ser. B, 5.375%, 6/01/35   1,676,290  
      Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home RB, Elmhurst Mem. Hosp. Proj.,      
  5,000      5.50%, 1/01/22   5,169,800  
  6,000      5.625%, 1/01/28   6,224,700  
  40,000   Met. Pier & Exposition Auth., Pub. Impvts. Sales Tax RB, McCormick Place Expansion Proj., Ser. A,      
         Zero Coupon, 12/15/34, MBIA   10,832,000  
  10,090   Mun. Elec. Agcy., Elec., Pwr. & Lt. RB, 4.50%, 2/01/35, FGIC   9,704,965  
      Vlg. of Bolingbrook, Pub. Impvts. Ad Valorem Ppty. Tax GO,      
  7,120      Ser. B, Zero Coupon, 1/01/33, FGIC   2,106,238  
            14,085      Ser. B, Zero Coupon, 1/01/34, FGIC
 
3,961,406
 
       
 
87,931,260
 
      Indiana—7.1%      
  9,000   Hlth. Fac. Fing. Auth., Hlth., Hosp. & Nursing Home RB, Methodist Hosp., Inc. Proj., 5.50%,      
         9/15/31   9,022,410  
  7,750   Mun. Pwr. Agcy., Elec., Pwr. & Lt. Impvts. RB, Pwr. Sply. Sys. Proj., Ser. A, 4.50%, 1/01/32,      
         AMBAC   7,547,957  
      Petersburg, Rec. Recovery Impvts. RB, Indianapolis Pwr. & Lt. Conv. Proj.,      
  10,000      5.90%, 12/01/24, AMT   10,451,600  
  16,000      5.95%, 12/01/29, AMT   16,837,440  
  2,390   Vincennes, Econ. Dev. RB, Southwest Indiana Regl. Youth Proj., 6.25%, 1/01/24
 
2,388,375
 
       
 
46,247,782
 
      Kentucky—0.2%      
  1,365   Hsg. Corp., St. Hsg. RB, Ser. F, 5.45%, 1/01/32, AMT
 
1,385,912
 
      Louisiana—2.1%      
  9,215   Local Gov't. Env. Facs. & Cmnty. Dev. Auth., Pub. Imvts. Misc. RB, Cap. Projs. & Equip.      
         Acquisition Proj., 6.55%, 9/01/25, ACA   10,214,183  
  3,260   St. Tammany Parish Fin. Auth., Local Sngl. Fam. Hsg. RB, Ser. A, 5.25%, 12/01/39
 
3,387,922
 
       
 
13,602,105
 
      Maryland—1.6%      
  3,200   City of Baltimore, Swr. Impvts. RB, Ser. D, 5.00%, 7/01/37, AMBAC   3,337,152  
  2,665   Cmnty. Dev. Admin., Local or Gtd. Hsg. RB, Ser. A, 4.65%, 9/01/32, AMT   2,512,775  
  4,205   Hlth. & Higher Edl. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Medstar Hlth., Inc. Proj.,      
         5.50%, 8/15/33
 
4,361,174
 
       
 
10,211,101
 
      Massachusetts—1.1%      
6,770   Wtr. Recs. Auth., Wtr. RB, Ser. A, 5.00%, 8/01/41
 
6,977,839
 
      Michigan—0.7%      
  4,230   Hosp. Fin. Auth., Hlth., Hosp. & Nursing Home RB, Henry Ford Hlth. Sys. Proj., Ser. A, 5.25%, 11/15/46
 
4,286,471
 
      Mississippi—3.8%      
  6,460   Business Fin. Comm., Indl. Impvts. RB, Northrop Grumman Ship Sys. Proj., 4.55%, 12/01/28, AMT   6,027,891  
  18,680   Gulfport, Hlth., Hosp. & Nursing Home Impvts. RB, Mem. Hosp. at Gulfport Proj., Ser. A, 5.75%, 7/01/31
 
18,985,978
 
       
 
25,013,869
 
      Missouri—0.1%      
  695   Joint Mun. Elec. Util. Comm., Elec., Pwr. & Lt. Impvts. RB, Plum Point Proj., 4.60%, 1/01/36, MBIA
 
679,870
 
      Multi-State—7.0%      
      Charter Mac Equity Issuer Trust,      
  1,000 2    Ser. A, 6.625%, 6/30/49   1,037,080  
  11,000 2    Ser. A-2, 6.30%, 6/30/49   11,338,910  
  16,000 2    Ser. A-3, 6.80%, 10/01/52   17,962,080  
  6,500 2    Ser. B-1, 6.80%, 11/30/50   6,872,190  
  8,000 2 MuniMae TE Bond Subsidiary LLC, Ser. A, 6.875%, 6/30/49
 
8,329,360
 
       
 
45,539,620
 
      Nebraska—1.1%      
  6,990   Omaha Pub. Pwr. Dist., Elec., Pwr. & Lt. Impvts. RB, Ser. A, 4.75%, 2/01/44
 
6,965,954
 
      Nevada—1.6%      
      Cnty. of Clark,      
  5,000      Port, Arpt. & Marina RB, Jet Aviation Fuel Tax Proj., Ser. C, 5.00%, 7/01/40, AMBAC   5,127,900  
  5,260      Private Schs. RB, Alexander Dawson Sch. Rainbow Proj., 5.00%, 5/15/29
 
5,387,397
 
       
 
10,515,297
 
      New Hampshire—1.2%      
  4,000   Bus. Fin. Auth., Indl. RB, Pub. Svc. Co. Proj., Ser. B, 4.75%, 5/01/21, MBIA, AMT   4,023,360  
  3,500   Hlth. & Ed. Facs. Auth., Hlth., Hosp. & Nursing Home RB, Exeter Hosp. Proj., 5.75%, 10/01/31
 
3,655,365
 
       
 
7,678,725
 
      New Jersey—8.3%      
      Econ. Dev. Auth.,      
  18,500      Econ. Impvts. Misc. RB, Cigarette Tax Proj., 5.75%, 6/15/29   19,698,800  
  15,410      Port, Arpt. & Marina Impvts. RB, Contl. Airlines, Inc. Proj., 7.00%, 11/15/30, AMT   16,270,186  
  8,000      SA, Kapkowski Rd. Landfill Proj., 6.50%, 4/01/28   9,500,960  
  3,680   Middlesex Cnty. Impvt. Auth., Pub. Impvts. Hotel Occupancy Tax RB, Heldrich Associates LLC      
         Proj., Ser. B, 6.25%, 1/01/37   3,838,755  
  5,000   Tobacco Settlement Fing. Corp., Tobacco Settlement RB, Ser. 1A, 4.50%, 6/01/23
 
4,796,600
 
       
 
54,105,301
 


2

BlackRock Municipal Income Trust (BFK) (continued)
(Percentages shown are based on Net Assets)

Principal                   
Amount          
(000)
 
Description
 
Value
 
      New York—9.9%       
$
 1,820   Albany Indl. Dev. Agcy., Sch. Impvts. Lease Approp. RB, New Covenant Charter Sch. Proj., Ser. A,      
         7.00%, 5/01/35 $           1,544,361  
            11,700   City of New York, Pub. Impvts. Ad Valorem Ppty. Tax GO, Ser. I-1, 5.00%, 4/01/25   12,183,444  
  5,375   Env. Facs. Corp., Swr. Impvts. Misc. RB, NYC Mun. Wtr. Proj., Ser. B, 5.00%, 6/15/31   5,512,385  
  6,025   Liberty Dev. Corp., Indl. Impvts. Misc. RB, Goldman Sachs Grp., Inc. Proj., 5.25%, 10/01/35   6,392,645  
  7,115   Met. Transp. Auth., Misc. RB, Ser. A, 5.00%, 7/01/30, AMBAC   7,307,959  
     
New York City Indl. Dev. Agcy., Port, Arpt. & Marina Impvts. RB, American Airlines, Inc./JFK Intl.
     
         Arpt. Proj.,      
  22,140      7.75%, 8/01/31, AMT   26,034,205  
  5,000      8.00%, 8/01/28, AMT
 
5,987,650
 
       
 
64,962,649
 
      North Carolina—3.7%      
  12,550   Cap. Facs. Fin. Agcy., Coll. & Univ. RB, Duke Univ. Proj., Ser. B, 4.25%, 7/01/42   11,301,903  
  12,130   Gaston Cnty. Indl. Facs. & Poll. Ctrl. Fing. Auth., Indl. Impvts. RB, 5.75%, 8/01/35
 
12,527,136
 
       
 
23,829,039
 
      Ohio—6.5%      
      Air Qual. Dev. Auth.,      
  14,500      Indl. RB, Cleveland Elec. Illuminating Co. Proj., Ser. B, 6.00%, 8/01/20   14,802,905  
  23,820      Rec. Recovery RB, Dayton Pwr. & Lt. Co. Proj., 4.80%, 1/01/34, FGIC   23,946,961  
  3,760   Pinnacle Cmnty. Infrastructure Fing. Auth., Hsg. Misc. RB, Ohio Facs. Proj., Ser. A, 6.25%, 12/01/36
 
3,902,880
 
       
 
42,652,746
 
      Oklahoma—2.1%      
  5,420   Dev. Fin. Auth., Hlth., Hosp. & Nursing Home RB, St. John Hlth. Sys., Inc. Proj., 5.00%, 2/15/42   5,419,892  
  7,175   Tulsa Mun. Arpt. Trust, Port, Arpt. & Marina Impvts. RB, AMR Corp. Proj., Ser. A, 7.75%, 6/01/35, AMT
 
8,230,873
 
       
 
13,650,765
 
      Pennsylvania—4.6%      
      Econ. Dev. Fing. Auth.,      
  15,580      Elec., Pwr. & Lt. Impvts. RB, Reliant Energy, Inc. Proj., Ser. A, 6.75%, 12/01/36, AMT   17,049,506  
  6,500      Trans. Impvts. Lease Renewal RB, Amtrak Proj., Ser. A, 6.375%, 11/01/41   6,804,525  
  4,000   Higher Edl. Facs. Auth., Univ. & Coll. Impvts. RB, La Salle Univ. Proj., 5.50%, 5/01/34   4,108,600  
  2,500   Hsg. Fin. Agcy., Local or Gtd. Hsg. RB, Ser. 97A, 4.60%, 10/01/27
 
2,368,250
 
       
 
30,330,881
 
      Puerto Rico—3.5%      
      Elec. Pwr. Auth., Elec., Pwr. & Lt. RB,      
  11,000      Ser. UU, 5.00%, 7/01/20, FSA   11,744,150  
  1,800      Ser. UU, 5.00%, 7/01/22, FSA   1,914,246  
  8,055   Hwy. & Transp. Auth., Hwy. Impvts. Tolls RB, Ser. N, 5.25%, 7/01/36
 
8,887,323
 
       
 
22,545,719
 
      South Carolina—5.9%      
     
Jobs-Econ. Dev. Auth., Hlth., Hosp. & Nursing Home RB, Palmetto Hlth. Alliance Proj.,
     
  9,000 1    6.875%, 8/01/13   10,378,576  
  5,075      Ser. A, 6.25%, 8/01/31   5,498,661  
      Lexington Cnty., Hlth., Hosp. & Nursing Home RB, Lexington Med. Ctr. Proj.,      
  5,000 1    5.50%, 11/01/13   5,428,050  
  10,000 1    5.75%, 11/01/13   10,993,400  
  6,345   Scago Edl. Facs Corp. Colleton Sch. Dist., Lease RB, Chesterfield Cnty. Sch. Proj., 5.00%, 12/01/29
 
6,540,299
 
       
 
38,838,986
 
      Tennessee—2.2%      
  20,825   Knox Cnty. Hlth., Edl. & Hsg. Facs. Brd., Hlth., Hosp. & Nursing Home RB, Covenant Hlth. Proj.,      
         Ser. A, Zero Coupon, 1/01/20, FSA   10,908,135  
  3,475   Shelby Cnty. Hlth., Edl. & Hsg. Facs. Brd., Hlth., Hosp. & Nursing Home RB, St. Jude's Children's      
         Hosp. Proj., 5.00%, 7/01/25
 
3,527,299
 
       
 
14,435,434
 
      Texas—12.9%      
  4,4353   Affordable Hsg. Corp., Multi-Fam. Hsg. RB, Amer. Oppty. Hsg. Portfolio Proj., Ser. B, 8.00%,      
         3/01/32   663,254  
      Harris Cnty.-Houston Sports Auth.,      
  12,580      Hotel Occupancy Tax RB, Ser. A, Zero Coupon, 11/15/38, MBIA   2,408,567  
  5,000      Hotel Occupancy Tax RB, Ser. H, Zero Coupon, 11/15/35, MBIA   1,158,550  
  26,120      Lease RB, Ser. A-3, Zero Coupon, 11/15/37, MBIA   5,159,222  
      Lower Colorado River Auth., Misc. RB,      
  5 1    Ser. A, 5.00%, 5/15/13, MBIA   5,282  
  2,395      Ser. A, 5.00%, 5/15/31, MBIA   2,452,815  
  13,305      Transm. Svcs. Proj., 4.75%, 5/15/34, AMBAC   13,317,773  
  1,700   Montgomery Cnty. Mun. Util. Dist. No. 46, Pub. Impvts. Ad Valorem Ppty. Tax GO, 4.75%, 3/01/30, MBIA  
1,699,932
  
  5,060   Pearland, Ad Valorem Ppty. Tax GO, 4.75%, 3/01/29, FGIC   5,088,184  
  6,540   San Antonio Energy Acquisition Pub. Corp., Natural Gas Util. Impvts. RB, 5.50%, 8/01/25   6,989,560  
      Tpke. Auth., Hwy. Impvts. Tolls Impvts. RB,      
  35,000      Zero Coupon, 8/15/32, AMBAC   8,542,800  
  62,325      Zero Coupon, 8/15/33, AMBAC   14,300,471  
  65,040      Zero Coupon, 8/15/34, AMBAC   14,055,795  
  8,390      Ser. A, 5.00%, 8/15/42, AMBAC
 
8,541,524
 
       
 
84,383,729
 
      Virginia—0.3%      
  8,105   Comnwlth. Transp. Brd., Hwy. Impvts. RB, Zero Coupon, 4/01/32, MBIA
 
2,266,644
 
      Washington—1.9%      
  3,615   Cnty. of King, Swr. RB, 5.00%, 1/01/36, FSA   3,730,101  
  8,845   Hlth. Care Facs. Auth., Hlth., Hosp. & Nursing Home RB, Providence Hlth. Sys. Proj., Ser. A,      
         4.625%, 10/01/34, FGIC
 
8,610,873
 
       
 
12,340,974
 


3

BlackRock Municipal Income Trust (BFK) (continued)
(Percentages shown are based on Net Assets)

Principal                   
Amount          
(000)
 
Description
 
Value
 
 
  West Virginia—0.3%       
$
2,070
  Econ. Dev. Auth., Correctional Fac. Impvts. Lease RB, Correctional Juvenile Safety Proj., Ser. A,      
 
     5.00%, 6/01/29, MBIA
$
          2,138,786
 
 
  Wisconsin—6.0%      
 
  Hlth. & Edl. Facs. Auth., Hlth., Hosp. & Nursing Home RB,      
 
7,500
     Aurora Hlth. Care Proj., 6.40%, 4/15/33   8,152,050  
 
          12,545
 1    Froedtert & Cmnty. Hlth. Oblig. Grp. Proj., 5.375%, 10/01/11   13,351,393  
 
1,205
     Froedtert & Cmnty. Hlth. Oblig. Grp. Proj., 5.375%, 10/01/30   1,264,370  
 
15,000
1    Wheaton Franciscan Svcs. Proj., 5.75%, 2/15/12
 
16,263,300
 
 
   
 
39,031,113
 
 
  Wyoming—0.8%      
 
  Cmnty. Dev. Auth., Local or Gtd. Hsg. RB,      
 
2,765
     Ser. 3, 4.65%, 12/01/27, AMT   2,620,529  
 
2,605
     Ser. 3, 4.70%, 12/01/32, AMT   2,467,482  
 
   
 
5,088,011
 
 
   Total Long-Term Investments (cost $971,024,441)
 
1,019,469,849
 
Shares
         
(000)
         
 
  MONEY MARKET FUND—0.0%      
 
100
4,5 Merrill Lynch Institutional Tax-Exempt Fund, 3.47% (cost $100,000)
 
100,000
 
Total Investments —156.2% (cost $971,124,4416) $ 1,019,569,849  
Other assets in excess of liabilities —1.3%   8,651,706  
Preferred shares at redemption value, including dividends payable —(57.5)%
 
(375,279,149
)
Net Assets Applicable to Common Shareholders —100%
$
652,942,406
 

 

 
1     

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.
 
2

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, 2007, the Trust held 7.7% of its net assets, with a current market value of $50,204,993, in securities restricted as to resale.
 
3

Issuer is in default and/or bankruptcy.
 
4

Represents an investment in an affiliate.
 
5

Represents current yield as of July 31, 2007.
 
6

Cost for federal income tax purposes is $971,274,513. The net unrealized appreciation on a tax basis is $48,295,336, consisting of $56,553,013 gross unrealized appreciation and $8,257,677 gross unrealized depreciation.
 
 
KEY TO ABBREVIATIONS
ACA  
—
  American Capital Access
     AMBAC  
—
  American Municipal Bond Assurance Corp.     
AMT  
—
  Subject to Alternative Minimum Tax
FGIC  
—
  Financial Guaranty Insurance Co.
FSA  
—
  Financial Security Assurance
GO  
—
  General Obligation
MBIA  
—
  Municipal Bond Insurance Assoc.
RB  
—
  Revenue Bond
SA  
—
  Special Assessment
ST  
—
  Special Tax
TA  
—
  Tax Allocation
XLCA  
—
  XL Capital Assurance
 

4

Item 2 –  Controls and Procedures

2(a) –      The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities and Exchange Act of 1934, as amended.

2(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

Certifications – Attached hereto

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.

BlackRock Municipal Income Trust

By:     
/s/ Donald C. Burke
  Donald C. Burke,
  Treasurer of
  BlackRock Municipal Income Trust        
   
Date: September 20, 2007

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
  Robert S. Kapito,
  President (principal executive officer) of
  BlackRock Municipal Income Trust
   
Date: September 20, 2007
   
By:     
/s/ Donald C. Burke
  Donald C. Burke,
  Treasurer (principal financial officer) of
  BlackRock Municipal Income Trust
   
Date: September 20, 2007