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, 2007
Date of reporting period:__January 31, 2007

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)
JANUARY 31, 2007
BlackRock Municipal Income Trust (BFK)
(Percentage of Net Assets)

   
Principal
             
   
Amount
     
Option Call
     
Rating1
     
(000)
      Description       Provisions2        
Value
        LONG-TERM INVESTMENTS—154.3%          
        Alabama—3.9%          
AAA   $      1,865   Birmingham Wtr. Wks. & Swr. Brd., Wtr. Util. Impvt. Wtr. RB, Ser. A, 4.50%, 1/01/35,          
           FSA   01/16 @ 100   $ 1,850,285
A2   15,000   Huntsville Hlth. Care Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Ser. B, 5.75%,          
           6/01/32   06/12 @ 101     16,078,650
       
Spl. Care Facs. Fing. Auth. Birmingham, Hlth., Hosp. & Nursing Home RB, Ascension Hlth. Proj.,
         
AA+   4,545      Ser. C-2, 5.00%, 11/15/36   11/16 @ 100     4,708,438
AA+   3,260      Ser. C-2, 5.00%, 11/15/39   11/16 @ 100     3,368,395
                  26,005,768
        Arizona—1.1%          
A3   7,000 3 Scottsdale Indl. Dev. Auth., Hlth., Hosp. & Nursing Home RB, Scottsdale Hlth. Care Proj.,          
           5.80%, 12/01/11   N/A     7,654,570
        California—15.4%          
A+   7,000   California GO, 5.00%, 6/01/34   12/14 @ 100     7,289,450
NR   3,175   City of Lincoln, Pub. Impvts. ST, 6.00%, 9/01/34   09/13 @ 102     3,286,665
        Cnty. Tobacco Sec. Agcy., Tobacco Settlement Funded RB,          
BBB-   3,385      Ser. B, Zero Coupon, 6/01/46   06/16 @ 17.602     347,538
BB   17,855      Ser. C, Zero Coupon, 6/01/55   06/16 @ 8.9     839,721
NR   22,825      Stanislaus Cnty. Proj., Ser. D, Zero Coupon, 6/01/55   06/16 @ 6.219     757,105
        Foothill Eastn. Transp. Corridor Agcy., Hwy. Tolls RB,          
BBB   54,635      Zero Coupon, 1/15/32   01/10 @ 27.37     12,922,270
BBB   20,535      Zero Coupon, 1/15/34   01/10 @ 24.228     4,299,618
BBB   75,000      Zero Coupon, 1/15/38   01/10 @ 19.014     12,302,250
        Golden St. Tobacco Sec. Corp.,          
BBB   10,000      Misc. Purps. Tobacco Settlement Funded RB, Ser. A-1, 6.625%, 6/01/40   06/13 @ 100     11,345,100
A   5,000      Tobacco Settlement Funded RB, Ser. A, 5.00%, 6/01/45   06/15 @ 100     5,161,300
AAA   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   01/12 @ 100     13,895,157
NR   5,000   Murrieta Cmnty. Facs. Dist. No. 2, Econ. Impvts. ST, The Oaks Impvt. Area A Proj.,          
           6.00%, 9/01/34   09/14 @ 100     5,334,850
A+   5,000   Statewide Cmnty. Dev. Auth., Hlth., Hosp. & Nursing Home RB, Mem. Hlth. Svcs. Proj.,          
           Ser. A, 5.50%, 10/01/33   04/13 @ 100     5,271,800
        Univ. of California, Univ. & Coll. Impvts. RB,          
AA-   10,565      Ser. B, 4.75%, 5/15/38   05/13 @ 101     10,753,163
AAA   5,000      Ser. C, 4.75%, 5/15/37, MBIA   05/13 @ 101     5,117,200
AAA   4,015   West Valley-Mission Cmnty. Coll. Dist., Univ. & Coll. Impvts. Ad Valorem Ppty. Tax GO,          
           Election 2004, 4.75%, 8/01/30, FSA   08/16 @ 100     4,126,296
                  103,049,483
        Colorado—1.3%          
AAA   2,545   City of Colorado Springs, Mult. Util. Impvts. RB, Ser. C, 5.00%, 11/15/45, FSA   11/15 @ 100     2,664,589
BBB   3,500   Denver Hlth. & Hosp. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Ser. A, 6.00%,          
           12/01/31   12/11 @ 100     3,719,135
Baa2   2,530   Park Creek Met. Dist., Ppty. Tax Misc. RB, 5.50%, 12/01/37   12/15 @ 101     2,672,743
                  9,056,467
        District of Columbia—6.4%          
        District of Columbia,          
A   2,390      Misc. RB, Friendship Pub. Charter Sch. Proj., 5.25%, 6/01/33, ACA   06/14 @ 100     2,506,847
AAA   15,600      Univ. & Coll. Impvts. RB, Georgetown Univ. Proj., Ser. A, Zero Coupon, 4/01/36, MBIA   04/11 @ 22.875     2,954,952
AAA   51,185      Univ. & Coll. Impvts. RB, Georgetown Univ. Proj., Ser. A, Zero Coupon, 4/01/37, MBIA   04/11 @ 21.546     9,132,428
BBB   25,535   Tobacco Settlement Fing. Corp., Tobacco Settlement Funded RB, 6.75%, 5/15/40   05/11 @ 101     28,161,530
                  42,755,757
        Florida—12.1%          
NR   3,945   Bellalago Edl. Facs. Benefit Dist., Sch. Impvts. SA, Ser. B, 5.80%, 5/01/34   05/14 @ 100     4,102,011
AAA   10,830   Cnty. of Orange, Sales Tax RB, 4.75%, 10/01/32, XLCA   10/16 @ 100     11,033,712
NR   1,975   Heritage Isle at Viera Cmnty. Dev. Dist., Wtr. Util. Impvts. SA, Ser. A, 6.00%, 5/01/35   05/12 @ 101     2,064,626
A+   9,670 3 Highlands Cnty. Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home RB, Adventist Hlth.          
           Sys./Sunbelt Proj., Ser. A, 6.00%, 11/15/11   N/A     10,651,215

1

BlackRock Municipal Income Trust (BFK) (continued)
(Percentage of Net Assets)

   
Principal
             
   
Amount
     
Option Call
     
Rating1
     
(000)
      Description       Provisions2        
Value
        Florida—(cont'd)          
        JEA,          
AAA   $      11,035      Elec., Pwr. & Lt. Impvts. RB., Ser. 3A, 4.75%, 10/01/34, FSA   04/10 @ 100  
$
 11,115,556
AAA   3,070      Wtr. Util. Impvts. Wtr. RB, Ser. A, 4.75%, 10/01/36, MBIA   04/11 @ 100     3,118,506
AAA   2,900      Wtr. Util. Impvts. Wtr. RB, Ser. A, 4.75%, 10/01/41, MBIA   04/11 @ 100     2,940,310
BB+   9,000   Martin Cnty. Indl. Dev. Auth., Indl. RB, Indiantown Cogeneration Proj., Ser. A, 7.875%,          
           12/15/25, AMT   03/07 @ 100     9,094,320
BB+   11,685   Miami Beach Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Mt. Sinai Med.          
           Ctr. Proj., 6.75%, 11/15/21   11/14 @ 100     13,231,276
NR   3,925   Stevens Plantation Cmnty. Dev. Dist., Pub. Impvts. SA, Ser. A, 7.10%, 5/01/35   05/14 @ 100     4,259,253
NR   9,110   Vlg. Cmnty. Dev. Dist. No. 6, Pub. Impvts. SA, 5.625%, 5/01/22   05/13 @ 100     9,269,789
                  80,880,574
        Georgia—0.6%          
BBB   4,000   Richmond Cnty. Dev. Auth., Rec. Recovery RB, Intl. Paper Co. Proj., Ser. A, 6.00%,          
           2/01/25, AMT   02/12 @ 101     4,259,200
        Idaho—2.7%          
AAA   16,970   Univ. of Idaho, Univ. & Coll. Impvts. RB, Student Fee Hsg. Impvt. Proj., 5.40%, 4/01/41,          
           FGIC   04/11 @ 100     17,853,967
        Illinois—14.4%          
NR   4,630 4 Centerpoint Intermodal Ctr. Prog. Trust TA, Ser. A, 8.00%, 6/15/23   No Opt. Call     4,762,603
AAA   7,645   Chicago O'Hare Intl. Arpt., Port, Arpt. & Marina RB, Ser. C-2, 5.25%, 1/01/30, FSA, AMT   01/14 @ 100     8,005,385
        Edl. Facs. Auth., Univ. & Coll. Impvts RB,          
AA+   760      Ser. A, 5.25%, 7/01/41   07/11 @ 101     796,396
AAA   10,000 3    Student Hsg. Edl. Advancement Fund Univ. Ctr. Proj., 6.25%, 5/01/12   N/A     11,237,500
BBB   7,000      Student Hsg. Edl. Advancement Fund Univ. Ctr. Proj., 6.25%, 5/01/34   05/07 @ 100     7,040,740
        Fin. Auth.,          
A+   7,145 3    Cash Flow Mgt., Hlth., Hosp. & Nursing Home RB, Adventist Hlth. Sys. Sunbelt Oblig.          
           Proj., 5.65%, 11/15/09   N/A     7,567,198
BB+   1,685      Hlth., Hosp. & Nursing Home RB, Friendship Vlg. Schaumburg Proj., Ser. A, 5.625%,          
           2/15/37   02/15 @ 100     1,732,635
AA+   3,700      Hlth., Hosp. & Nursing Home RB, Northwestern Mem. Hosp. Proj., Ser. A, 5.50%,          
           8/15/43   08/14 @ 100     4,007,988
BBB   4,235      Univ. & Coll. Impvts. RB, Edl. Advancement Proj., Ser. B, 5.00%, 5/01/25   11/16 @ 100     4,339,816
BBB   3,395      Univ. & Coll. Impvts. RB, Edl. Advancement Proj., Ser. B, 5.00%, 5/01/30   11/16 @ 100     3,468,366
Baa2   2,100      Univ. & Coll. Impvts. RB, MJH Ed. Asst. LLC Proj., Ser. A, 5.125%, 6/01/35   06/14 @ 100     2,152,059
Baa3   1,675      Univ. & Coll. Impvts. RB, Student Hsg. MJH Ed. Asst. Living Proj., Ser. B, 5.375%,          
           6/01/35   06/14 @ 100     1,716,138
        Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home RB, Elmhurst Mem. Hosp. Proj.,          
A   5,000      5.50%, 1/01/22   01/13 @ 100     5,288,900
A   6,000      5.625%, 1/01/28   01/13 @ 100     6,350,160
AAA   40,000   Met. Pier & Exposition Auth., Pub. Impvts. Sales Tax RB, McCormick Place Expansion          
           Proj., Ser. A, Zero Coupon, 12/15/34, MBIA   No Opt. Call     11,446,000
AAA   10,090   Mun. Elec. Agcy. Pwr. Sply., Elec., Pwr. & Lt. RB, 4.50%, 2/01/35, FGIC   02/16 @ 100     9,963,371
        Vlg. of Bolingbrook, Pub. Impvts. Ad Valorem Ppty. Tax GO, Ser. B,          
AAA   7,120      Zero Coupon, 1/01/33, FGIC   No Opt. Call     2,196,307
AAA   14,085      Zero Coupon, 1/01/34, FGIC   No Opt. Call     4,141,131
                  96,212,693
        Indiana—7.0%          
A-   9,000   Hlth. Fac. Fing. Auth., Hlth., Hosp. & Nursing Home RB, Methodist Hosp., Inc. Proj.,          
           5.50%, 9/15/31   09/11 @ 100     9,017,550
AAA   7,750   Mun. Pwr. Agcy. Pwr. Sply. Sys., Elec., Pwr. & Lt. Impvts. RB, Ser. A, 4.50%, 1/01/32,          
           AMBAC   01/16 @ 100     7,692,340
        Petersburg, Rec. Recovery Impvts. RB, Indianapolis Pwr. & Lt. Conv. Proj.,          
BBB+   10,000      5.90%, 12/01/24, AMT   08/11 @ 102     10,564,500
BBB+   16,000      5.95%, 12/01/29, AMT   08/11 @ 102     17,032,160

2

BlackRock Municipal Income Trust (BFK) (continued)
(Percentage of Net Assets)

   
Principal
             
   
Amount
     
Option Call
     
Rating1
     
(000)
     
Description
      Provisions2        
Value
        Indiana—(cont'd)          
NR   $      2,390   Vincennes, Econ. Dev. RB, Southwest Indiana Regl. Youth Proj., 6.25%, 1/01/24   01/09 @ 102  
$
 2,407,877
                  46,714,427
        Kentucky—0.6%          
AAA   4,140   Hsg. Corp., St. Hsg. RB, Ser. F, 5.45%, 1/01/32, AMT   07/11 @ 100     4,253,726
        Louisiana—2.0%          
A   9,215   Local Gov't. Env. Facs. & Cmnty. Dev. Auth., Pub. Impvts. Misc. RB, Cap. Projs. & Equip.          
           Acquisition Proj., 6.55%, 9/01/25, ACA   No Opt. Call     10,309,926
Aaa   3,260   St. Tammany Parish Fin. Auth., Sngl. Fam. Hsg. RB, Home Ownership Prog., Ser. A,          
           5.25%, 12/01/39   12/16 @ 103     3,421,370
                  13,731,296
        Maryland—0.7%          
A3   4,205   Hlth. & Higher Edl. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Medstar Hlth.,          
           Inc. Proj., 5.50%, 8/15/33   08/14 @ 100     4,462,977
        Massachusetts—1.1%          
AA   6,770   Wtr. Recs. Auth., Wtr. RB, Ser. A, 5.00%, 8/01/41   08/16 @ 100     7,093,335
        Michigan—0.7%          
A1   4,230   Hosp. Fin. Auth., Hlth., Hosp. & Nursing Home RB, Henry Ford Hlth. Sys. Proj., Ser. A,          
           5.25%, 11/15/46   11/16 @ 100     4,439,681
        Mississippi—3.8%          
BBB+   6,460   Business Fin. Comm., Indl. Impvts. RB, Northrop Grumman Ship Sys. Proj., 4.55%,          
           12/01/28   12/16 @ 100     6,422,467
A   18,680   Gulfport, Hlth., Hosp. & Nursing Home Impvts. RB, Mem. Hosp. at Gulfport Proj., Ser. A,          
           5.75%, 7/01/31   07/11 @ 100     19,168,669
                  25,591,136
        Missouri—0.1%          
AAA   695   Joint Mun. Elec. Util. Comm., Elec., Pwr. & Lt. Impvts. RB, Plum Point Proj., 4.60%,          
           1/01/36, MBIA   01/16 @ 100     698,510
        Multi-State—6.9%          
        Charter Mac Equity Issuer Trust,          
A3   1,000 4    Ser. A, 6.625%, 6/30/49   06/09 @ 100     1,045,760
A3   11,000 4    Ser. A-2, 6.30%, 6/30/49   06/09 @ 100     11,417,450
A3   16,000 4    Ser. A-3, 6.80%, 10/01/52   10/14 @ 100     18,185,280
Baa1   6,500 4    Ser. B-1, 6.80%, 11/30/50   11/10 @ 100     6,973,265
A3   8,000 4 MuniMae TE Bond Subsidiary LLC, Ser. A, 6.875%, 6/30/49   06/09 @ 100     8,425,680
                  46,047,435
        Nebraska—1.1%          
AA   6,990   Omaha Pub. Pwr. Dist., Elec., Pwr. & Lt. Impvts. RB, Ser. A, 4.75%, 2/01/44   02/14 @ 100     7,073,041
        Nevada—2.5%          
        Cnty. of Clark,          
AAA   5,000      Port, Arpt. & Marina RB, Jet Aviation Fuel Tax Proj., Ser. C, 5.00%, 7/01/40, AMBAC   07/15 @ 100     5,198,250
A+   5,260      Private Schs. RB, Alexander Dawson Sch. Proj., 5.00%, 5/15/29   05/16 @ 100     5,445,415
AAA   6,000   Truckee Meadows Wtr. Auth., Wtr. RB, 4.875%, 7/01/34, XLCA   07/16 @ 100     6,152,400
                  16,796,065
        New Hampshire—1.2%          
Aaa   4,000   Bus. Fin. Auth., Indl. RB, Pub. Svc. Co. Proj., Ser. B, 4.75%, 5/01/21, MBIA, AMT   06/13 @ 102     4,063,440
A+   3,500   Hlth. & Ed. Facs. Auth., Hlth., Hosp. & Nursing Home RB, Exeter Hosp. Proj., 5.75%,          
           10/01/31   10/11 @ 101     3,715,075
                  7,778,515
        New Jersey—8.9%          
        Econ. Dev. Auth.,          
BBB   18,500      Econ. Impvts. Misc. RB, Cigarette Tax Proj., 5.75%, 6/15/29   06/14 @ 100     19,879,730
B   15,410      Port, Arpt. & Marina Impvts. RB, Continental Airlines, Inc. Proj., 7.00%, 11/15/30, AMT   11/10 @ 101     16,735,260
Baa3   8,000      SA, Kapkowski Rd. Landfill Proj., 6.50%, 4/01/28   No Opt. Call     9,747,200
NR   3,680   Middlesex Cnty. Impvt. Auth., Pub. Impvts. Hotel Occupancy Tax RB, Heldrich Associates          
           LLC Proj., Ser. B, 6.25%, 1/01/37   01/15 @ 100     3,799,968

3

BlackRock Municipal Income Trust (BFK) (continued)
(Percentage of Net Assets)

    Principal              
       
Amount
         
Option Call
     
Rating1
 
(000)
  Description      
Provisions2
       
Value
        New Jersey—(cont'd)          
BBB   $      10,000   Tobacco Settlement Fing. Corp., Tobacco Settlement RB, Ser. 1A, 4.50%, 6/01/23   06/17 @ 100   $ 9,806,700
                  59,968,858
        New York—14.1%          
NR   1,820   Albany Indl. Dev. Agcy., Sch. Impvts. Lease Appropriation RB, New Covenant Charter          
           Sch. Proj., Ser. A, 7.00%, 5/01/35   05/15 @ 102     1,788,951
AAA   5,375   Env. Facs. Corp., Swr. Impvts. Misc. RB, NYC Mun. Wtr. Proj., Ser. B, 5.00%, 6/15/31   06/12 @ 100     5,579,626
A   4,200   Hudson Yards Infrastructure Corp., Trans. Impvts. Misc. RB, Ser. A, 5.00%, 2/15/47   02/17 @ 100     4,383,246
AA-   36,725   Liberty Dev. Corp., Indl. Impvts. Misc. RB, Goldman Sachs Group, Inc. Proj., 5.25%,          
           10/01/35   No Opt. Call     42,042,046
AAA   7,115   Met. Transp. Auth., Misc. RB, Ser. A, 5.00%, 7/01/30, AMBAC   07/12 @ 100     7,391,418
        New York City Indl. Dev. Agcy., Port, Arpt. & Marina Impvts. RB, American Airlines/JFK Intl. Arpt. Proj.,      
B   22,140      7.75%, 8/01/31, AMT   08/16 @ 101     27,154,267
B   5,000      8.00%, 8/01/28, AMT   08/16 @ 101     6,243,250
                  94,582,804
        North Carolina—3.7%          
AA+   12,550   Cap. Facs. Fin. Agcy., Coll. & Univ. RB, Duke Univ. Proj., Ser. B, 4.25%, 7/01/42   10/16 @ 100     11,781,313
NR5   12,130   Gaston Cnty. Indl. Facs. & Poll. Ctrl. Fing. Auth., Indl. Impvts. RB, 5.75%, 8/01/35, AMT   08/15 @ 100     12,968,183
                  24,749,496
        Ohio—6.4%          
        Air Qual. Dev. Auth.,          
BBB   14,500      Indl. RB, Cleveland Elec. Illuminating Co. Proj., Ser. B, 6.00%, 8/01/20   08/07 @ 102     14,889,470
AAA   23,820      Rec. Recovery RB, Dayton Pwr. & Lt. Co. Proj., 4.80%, 1/01/34, FGIC   07/15 @ 100     24,254,953
NR   3,760   Pinnacle Cmnty. Infrastructure Fing. Auth., Hsg. Misc. RB, Ohio Facs. Proj., Ser. A,          
           6.25%, 12/01/36   12/14 @ 101     3,967,251
                  43,111,674
        Oklahoma—1.3%          
B   7,175   Tulsa Mun. Arpt. Trust, Port, Arpt. & Marina Impvts. RB, Ser. A, 7.75%, 6/01/35, AMT   No Opt. Call     8,555,685
        Pennsylvania—4.2%          
        Econ. Dev. Fing. Auth.,          
BB-   15,580      Elec., Pwr. & Lt. Impvts. RB, Reliant Energy Conv. Proj., Ser. A, 6.75%, 12/01/36, AMT   06/11 @ 103     17,177,262
A3   6,500      Trans. Impvts. Lease Renewal RB, Amtrak Proj., Ser. A, 6.375%, 11/01/41, AMT   05/11 @ 101     6,940,635
BBB+   4,000   Higher Edl. Facs. Auth., Univ. & Coll. Impvts. RB, La Salle Univ. Proj., 5.50%, 5/01/34   05/13 @ 100     4,199,960
                  28,317,857
        Puerto Rico—1.6%          
BBB   10,605   Comnwlth., Ad Valorem Ppty. Tax GO, Ser. B, 5.00%, 7/01/35   07/16 @ 100     11,065,893
        South Carolina—5.8%          
        Jobs Econ. Dev. Auth., Hlth., Hosp. & Nursing Home RB, Palmetto Hlth. Alliance Proj.,          
BBB+   9,000 3    6.875%, 8/01/13   N/A     10,534,983
BBB+   5,075      Ser. A, 6.25%, 8/01/31   08/13 @ 100     5,652,281
        Lexington Cnty., Hlth., Hosp. & Nursing Home RB, Lexington Med. Ctr. Proj.,          
A   5,000      5.50%, 11/01/32   11/13 @ 100     5,273,050
A   10,000      5.75%, 11/01/28   11/13 @ 100     10,750,000
AAA   6,345   Scago Edl. Facs Corp. Colleton Sch. Dist., Lease RB, Chesterfield Cnty. Sch. Proj., 5.00%,          
           12/01/29   12/16 @ 100     6,604,701
                  38,815,015
        Tennessee—2.2%          
AAA   20,825   Knox Cnty. Hlth. Edl. & Hsg. Facs. Brd., Hlth., Hosp. & Nursing Home RB, Convenant          
           Hlth. Proj., Ser. A, Zero Coupon, 1/01/20, FSA   01/13 @ 67.474     10,805,052

4

BlackRock Municipal Income Trust (BFK) (continued)
(Percentage of Net Assets)

   
Principal
             
   
Amount
     
Option Call
     
Rating1
     
(000)
      Description       Provisions2        
Value
        Tennessee—(cont'd)          
AA+   $      3,475   Shelby Cnty. Hlth. Edl. & Hsg. Fac. Brd., Hlth., Hosp. & Nursing Home RB, St. Jude’s          
           Children’s Hosp. Proj., 5.00%, 7/01/25  
07/16 @ 100
  $ 3,647,881
                  14,452,933
        Texas—12.1%          
NR   4,435 6,7 Affordable Hsg. Corp., Multi-Fam. Hsg. RB, Amer. Oppty. Hsg. Portfolio Proj., Ser. B,          
           8.00%, 3/01/32   No Opt. Call     665,161
AAA   3,805   Dallas Area Rapid Trans., Sales Tax RB, 5.00%, 12/01/31, AMBAC   12/11 @ 100     3,916,563
        Harris Cnty.-Houston Sports Auth., Hotel Occupancy Tax RB,          
AAA   12,580      Ser. A, Zero Coupon, 11/15/38, MBIA   11/30 @ 61.166     2,506,439
AAA   26,120      Ser. A-3, Zero Coupon, 11/15/37, MBIA   11/24 @ 46.545     5,274,411
AAA   5,000      Ser. H, Zero Coupon, 11/15/35, MBIA   11/31 @ 78.178     1,212,000
        Lower Colorado River Auth., Misc. RB,          
AAA   5 3    Ser. A, 5.00%, 5/15/13, MBIA   N/A     5,332
AAA   2,395      Ser. A, 5.00%, 5/15/31, MBIA   05/13 @ 100     2,483,687
AAA   13,305      Transm. Svcs. Proj., 4.75%, 5/15/34, AMBAC   05/11 @ 100     13,427,406
AAA   1,700   Montgomery Cnty. Mun. Util. Dist. No. 46, Pub. Impvts. Ad Valorem Ppty. Tax GO,          
           4.75%, 3/01/30, MBIA   03/14 @ 100     1,722,389
AAA   5,060   Pearland, Ad Valorem Ppty. Tax GO, 4.75%, 3/01/29, FGIC   03/16 @ 100     5,172,231
        Tpke. Auth., Hwy. Impvts. Tolls RB,          
AAA   35,000      Central Sys. Proj., Zero Coupon, 8/15/32, AMBAC   08/12 @ 30.846     8,364,650
AAA   62,325      Central Sys. Proj., Zero Coupon, 8/15/33, AMBAC   08/12 @ 28.997     14,002,558
AAA   65,040      Central Sys. Proj., Zero Coupon, 8/15/34, AMBAC   08/12 @ 27.31     13,763,114
AAA   8,390      Ser. A, 5.00%, 8/15/42, AMBAC   08/12 @ 100  
 
 8,674,589
                  81,190,530
        Virginia—0.3%          
AAA   8,105   Comnwlth. Transp. Brd., Hwy. Impvts. RB, Zero Coupon, 4/01/32, MBIA   04/12 @ 34.99  
 
 2,243,221
        Washington—1.9%          
AAA   3,615   Cnty. of King, Swr. RB, 5.00%, 1/01/36, FSA   01/16 @ 100     3,797,919
AAA   8,845   Hlth. Care Facs. Auth., Hlth., Hosp. & Nursing Home RB, Providence Hlth. Care Svcs.          
           Proj., Ser. A, 4.625%, 10/01/34, FGIC   10/16 @ 100  
 
 8,755,842
                  12,553,761
        West Virginia—0.3%          
AAA   2,070   Econ. Dev. Auth., Correctional Fac. Impvts. Lease RB, Correctional Juvenile Safety Proj.,          
           Ser. A, 5.00%, 6/01/29, MBIA   06/14 @ 100     2,169,484
        Wisconsin—5.9%          
A-   7,500   Hlth. & Edl. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Aurora Hlth. Care          
           Proj., 6.40%, 4/15/33   04/13 @ 100     8,312,250
        Hlth. & Edl. Facs. Auth., Hlth., Hosp. & Nursing Home RB,          
AA-   12,545 3    Froedtert & Cmnty. Hlth. Oblig. Grp. Proj., 5.375%, 10/01/11   N/A     13,448,240
AA-   1,205      Froedtert & Cmnty. Hlth. Oblig. Grp. Proj., 5.375%, 10/01/30   10/11 @ 101     1,275,673
A-   15,000 3    Wheaton Franciscan Svcs. Proj., 5.75%, 2/15/12   N/A  
 
 16,432,050
                  39,468,213
        Total Long-Term Investments (cost $966,398,581)         1,033,654,047
        SHORT-TERM INVESTMENTS—1.0%          
        Florida—0.3%          
A-1+   2,000 8 Jacksonville Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home RB, Baptist Med. Ctr. Proj.,          
           3.68%, 2/01/07, FRDD   N/A  
 
 2,000,000
        Massachusetts—0.3%          
A-1+   2,400 8 Hlth. & Edl. Fac. Auth., Coll. & Univ. RB, Harvard Univ. Proj., Ser. BB, 3.59%, 2/01/07,          
           FRWD   N/A  
 
 2,400,000

5

BlackRock Municipal Income Trust (BFK) (continued)
(Percentage of Net Assets)

   
Principal
             
   
Amount
      Option Call          
Rating1
     
(000)
     
Description
      Provisions2    
Value
        Pennsylvania—0.4%          
      Higher Ed. Asst. Agcy., Student Loans RB,          
A-1+
  $      1,700 8    Ser. A, 3.536%, 2/07/07, FRWD  
N/A
 
$
 1,700,000 
A-1+
  800 8    Ser. C, 3.53%, 2/07/07, AMBAC, AMT, FRWD  
N/A
    800,000 
         
    2,500,000 
      Texas—0.0%  
     
A-1+
  50 8 Wtr. Dev. Board, Wtr. RB, 3.77%, 2/01/07, FRDD  
N/A
    50,000 
        Total Short-Term Investments (cost $6,950,000)  
    6,950,000 
        Total Investments —155.3% (cost $973,348,5819)      
$
 1,040,604,047 
        Other assets in excess of liabilities —0.7%         4,797,873 
        Preferred shares at redemption value, including dividends payable —(56.0)%         (375,259,269)
        Net Assets Applicable to Common Shareholders—100%       $ 670,142,651 

  ____________
1     

Using the highest of Standard & Poor's, Moody's Investors Service 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 January 31, 2007, the Trust held 7.6% of its net assets, with a current market value of $50,810,038, in securities restricted as to resale.
5

Security is deemed to be of investment grade quality by the investment adviser.
6

Issuer is in default and/or bankruptcy.
7

Illiquid security. As of January 31, 2007, the Trust held 0.1% of its net assets, with a current market value of $665,161, in these securities.
8

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 January 31, 2007.
9

Cost for federal income tax purposes is $973,407,317. The net unrealized appreciation on a tax basis is $67,196,730, consisting of $72,295,175 gross unrealized appreciation and $5,098,445 gross unrealized depreciation.
 
KEY TO ABBREVIATIONS
ACA — American Capital Access GO — General Obligation
AMBAC       — American Municipal Bond Assurance Corp. MBIA — Municipal Bond Insurance Assoc.
AMT — Subject to Alternative Minimum Tax RB — Revenue Bond
FGIC — Financial Guaranty Insurance Co. SA — Special Assessment
FRDD — Floating Rate Daily Demand ST — Special Tax
FRWD — Floating Rate Weekly Demand TA — Tax Allocation
FSA — Financial Security Assurance XLCA — XL Capital Assurance
       

6

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.

3

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/ Donald C. Burke                                       
Name: Donald C. Burke
Title: Treasurer and Principal Financial Officer
Date: March 28, 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                                       
Name: Robert S. Kapito
Title: President and Principal Executive Officer
Date: March 28, 2007

By: /s/ Donald C. Burke                                       
Name: Donald C. Burke
Title: Treasurer and Principal Financial Officer
Date: March 28, 2007

4