<SEC-DOCUMENT>0000932440-11-000778.txt : 20110623
<SEC-HEADER>0000932440-11-000778.hdr.sgml : 20110623
<ACCEPTANCE-DATETIME>20110623162112
ACCESSION NUMBER:		0000932440-11-000778
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20110623
FILED AS OF DATE:		20110623
DATE AS OF CHANGE:		20110623

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BLACKROCK MUNIYIELD QUALITY FUND III, INC
		CENTRAL INDEX KEY:			0000883412
		STANDARD INDUSTRIAL CLASSIFICATION:	UNKNOWN SIC - 0000 [0000]
		IRS NUMBER:				223165131
		FISCAL YEAR END:			1031

	BUSINESS ADDRESS:	
		STREET 1:		100 BELLEVUE PARKWAY
		CITY:			WILMINGTON
		STATE:			DE
		ZIP:			19809
		BUSINESS PHONE:		800-441-7762

	MAIL ADDRESS:	
		STREET 1:		100 BELLEVUE PARKWAY
		CITY:			WILMINGTON
		STATE:			DE
		ZIP:			19809

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BLACKROCK MUNIYIELD INSURED FUND, INC
		DATE OF NAME CHANGE:	20070612

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MUNIYIELD INSURED FUND INC
		DATE OF NAME CHANGE:	19920717

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			BANK OF AMERICA CORP /DE/
		CENTRAL INDEX KEY:			0000070858
		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-06540
		FILM NUMBER:		11928102

	BUSINESS ADDRESS:	
		STREET 1:		BANK OF AMERICA CORPORATE CENTER
		STREET 2:		100 N TRYON ST
		CITY:			CHARLOTTE
		STATE:			NC
		ZIP:			28255
		BUSINESS PHONE:		7043868486

	MAIL ADDRESS:	
		STREET 1:		BANK OF AMERICA CORPORATE CENTER
		STREET 2:		100 N TRYON ST
		CITY:			CHARLOTTE
		STATE:			NC
		ZIP:			28255

	FORMER NAME:	
		FORMER CONFORMED NAME:	BANKAMERICA CORP/DE/
		DATE OF NAME CHANGE:	19981022

	FORMER NAME:	
		FORMER CONFORMED NAME:	NATIONSBANK CORP
		DATE OF NAME CHANGE:	19920703

	FORMER NAME:	
		FORMER CONFORMED NAME:	NCNB CORP
		DATE OF NAME CHANGE:	19920107

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
		CENTRAL INDEX KEY:			0000728612
		STANDARD INDUSTRIAL CLASSIFICATION:	SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211]
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-06540
		FILM NUMBER:		11928099

	BUSINESS ADDRESS:	
		STREET 1:		4 WORLD FINANCIAL CENTER
		STREET 2:		NORTH TOWER
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10080
		BUSINESS PHONE:		212-670-2756

	MAIL ADDRESS:	
		STREET 1:		4 WORLD FINANCIAL CENTER
		STREET 2:		NORTH TOWER
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10080

	FORMER NAME:	
		FORMER CONFORMED NAME:	MERRILL LYNCH PIERCE FENNER & SMITH INC
		DATE OF NAME CHANGE:	19920929

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			BANK OF AMERICA NA
		CENTRAL INDEX KEY:			0001102113

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-06540
		FILM NUMBER:		11928101

	BUSINESS ADDRESS:	
		STREET 1:		100 N. TRYON STREET
		CITY:			CHARLOTTE
		STATE:			NC
		ZIP:			28255
		BUSINESS PHONE:		(704) 386-5494

	MAIL ADDRESS:	
		STREET 1:		100 N. TRYON STREET
		CITY:			CHARLOTTE
		STATE:			NC
		ZIP:			28255

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Blue Ridge Investments, L.L.C.
		CENTRAL INDEX KEY:			0001453700
		STATE OF INCORPORATION:			DE

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-06540
		FILM NUMBER:		11928100

	BUSINESS ADDRESS:	
		STREET 1:		214 NORTH TRYON STREET
		CITY:			CHARLOTTE
		STATE:			NC
		ZIP:			28255
		BUSINESS PHONE:		980-386-4161

	MAIL ADDRESS:	
		STREET 1:		214 NORTH TRYON STREET
		CITY:			CHARLOTTE
		STATE:			NC
		ZIP:			28255
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>PRIMARY DOCUMENT
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2011-06-23</periodOfReport>

    <issuer>
        <issuerCik>0000883412</issuerCik>
        <issuerName>BLACKROCK MUNIYIELD QUALITY FUND III, INC</issuerName>
        <issuerTradingSymbol>MYI</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000070858</rptOwnerCik>
            <rptOwnerName>BANK OF AMERICA CORP /DE/</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>BANK OF AMERICA CORPORATE CENTER</rptOwnerStreet1>
            <rptOwnerStreet2>100 N. TRYON STREET</rptOwnerStreet2>
            <rptOwnerCity>CHARLOTTE</rptOwnerCity>
            <rptOwnerState>NC</rptOwnerState>
            <rptOwnerZipCode>28255</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001102113</rptOwnerCik>
            <rptOwnerName>BANK OF AMERICA NA</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>BANK OF AMERICA CORPORATE CENTER</rptOwnerStreet1>
            <rptOwnerStreet2>100 NORTH TRYON STREET</rptOwnerStreet2>
            <rptOwnerCity>CHARLOTTE</rptOwnerCity>
            <rptOwnerState>NC</rptOwnerState>
            <rptOwnerZipCode>28255</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001453700</rptOwnerCik>
            <rptOwnerName>Blue Ridge Investments, L.L.C.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1></rptOwnerStreet1>
            <rptOwnerStreet2>214 N. TRYON STREET</rptOwnerStreet2>
            <rptOwnerCity>CHARLOTTE</rptOwnerCity>
            <rptOwnerState>NC</rptOwnerState>
            <rptOwnerZipCode>28255</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000728612</rptOwnerCik>
            <rptOwnerName>MERRILL LYNCH, PIERCE, FENNER &amp; SMITH INC.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>4 WORLD FINANCIAL CENTER NORTH TOWER</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10080</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Auction Rate Preferred</value>
                <footnoteId id="F1"/>
            </securityTitle>
            <transactionDate>
                <value>2011-06-23</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F2"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>576</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Footnote</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">The Auction Rate Preferred Shares (&quot;Shares&quot;) reported in Table I represent Shares beneficially owned by Merrill Lynch, Pierce Fenner &amp; Smith, Inc. (&quot;MLPFS&quot;), Bank of America, N.A. (&quot;BANA&quot;) and Blue Ridge Investments, L.L.C. (&quot;Blue Ridge&quot;).  MLPFS and BANA are wholly owned subsidiaries of Bank of America Corporation (&quot;Bank of America&quot;) and Blue Ridge is a wholly owned subsidiary of BANA.</footnote>
        <footnote id="F2">Shares were called for redemption by the issuer at par value.</footnote>
    </footnotes>

    <remarks>The Shares reported herein represent Bank of America's combined holdings in multiple series of auction rate preferred securities of the issuer, which are treated herein as one class of securities in accordance with the Auction Rate Securities - Global Exemptive Relief no-action letter issued by the Securities and Exchange Commission on September 22, 2008.  The transaction relates to CUSIP 09254E202.</remarks>

    <ownerSignature>
        <signatureName>Bank of America Corporation and Bank of America, N.A., By: /s/ Michael Didovic, Title: Director</signatureName>
        <signatureDate>2011-06-23</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Merrill Lynch, Pierce, Fenner &amp; Smith Incorporated, By: /s/ Lawrence Emerson, Title: Attorney-In-Fact</signatureName>
        <signatureDate>2011-06-23</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Blue Ridge Investments, L.L.C., By: /s/ John Hiebendahl, Title: SVP</signatureName>
        <signatureDate>2011-06-23</signatureDate>
    </ownerSignature>
</ownershipDocument>
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</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
