<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<FILENAME>c23726_n30d.txt
<DESCRIPTION>N-30D
<TEXT>

--------------------------------------------------------------------------------
                         BLACKROCK MUNICIPAL INCOMETRUST
                       SEMI-ANNUAL REPORT TO SHAREHOLDERS
                          REPORT OF INVESTMENT ADVISOR
--------------------------------------------------------------------------------

                                                                    May 31, 2002
Dear Shareholder:

     The  semi-annual  period ended April 30, 2002,  saw general  turmoil in the
equity markets.  However, during this time bond markets,  particularly municipal
securities,  proved to be a shelter for investors  seeking  refuge from unstable
economic conditions.  Over the period,  municipal bonds outperformed  Treasuries
returning 1.08% versus -1.88%, respectively,  as measured by the LEHMAN BROTHERS
MUNICIPAL BOND INDEX* and LEHMAN BROTHERS TREASURY INDEX.**

     During the six-month period, the bond market was not without volatility. In
the aftermath of the  September  11th  tragedy,  the Federal  Reserve Board (the
"Fed")  lowered  interest  rates four times  before the year  ended.  Since bond
prices  generally  move in the opposite  direction  from  interest  rates,  this
aggressive  action  initially sent bond yields downward and prices (and returns)
markedly higher.

     For the first quarter of 2002, issues of new municipal securities increased
by 10%,  totaling $65 billion,  setting a record for the largest  first  quarter
issuance in history. Due in part to budgetary pressures,  a slowing economy, and
municipalities' ongoing need to finance infrastructure projects, the final month
of  the  period  continued  to  see  heightened   levels  of  new  issuance  and
year-to-date  volume has now reached $87 billion. In March, fixed income markets
suffered  following  the Fed's  announcement  of a bias  shift  from  "potential
weakness" to  "neutral,"  which led the  investment  community to  anticipate an
economy  in  the  early  stages  of  recovery.   Despite  higher  than  expected
unemployment  numbers during April,  economic indicators generally concluded the
period on a more positive tone than they began. U.S. manufacturing,  as measured
by the ISM (Institute for Supply  Management)  Index,  remained at  expansionary
levels in April and the Consumer  Confidence Index has bounced from its November
low on  increasing  expectations.  However,  we remain  cautious that the strong
consumer  demand,  which has created an increasingly  optimistic  stimulus,  may
become exhausted and slow.

     Interest rate fluctuations,  such as we have seen recently can be difficult
for  investors,  especially  those who depend on fixed  income  investments  for
current income.  We encourage you to consult with your financial advisor to help
you establish a strategy that best fits your overall goals and risk tolerance.

     The  semi-annual  report  includes a summary of market  conditions over the
period, a review of the strategy  employed by your Trust's  portfolio  managers,
the Trust's  unaudited  financial  statements  and a listing of the  portfolio's
holdings.  We  encourage  you to read the  report  and we thank  you for  making
BlackRock part of your investment program.


Sincerely,

/s/ Laurence D. Fink                   /s/ Ralph L. Schlosstein
--------------------                   ------------------------
Laurence D. Fink                       Ralph L. Schlosstein
Chairman                               President


----------
*    The Lehman  Brothers  Municipal Bond Index measures the  performance of the
     investment grade long-term  tax-exempt bond market.  The Index is unmanaged
     and cannot be purchased directly.
**   The Lehman  Brothers  Treasury Index measures the performance of the public
     obligations  of the U.S.  Treasury.  The Index is  unmanaged  and cannot be
     purchased directly.


                                       1
<PAGE>
                                                                    May 31, 2002

Dear Shareholder:

     We are pleased to present the first  unaudited  semi-annual  report for the
BlackRock  Municipal  Income Trust (the  "Trust") for the period ended April 30,
2002. We would like to take this  opportunity  to review the Trust's stock price
and net asset  value  (NAV)  performance,  summarize  developments  in the fixed
income markets and discuss recent portfolio management activity.

     The Trust is a diversified,  actively  managed  closed-end  bond fund whose
shares are traded on the New York Stock  Exchange  under the symbol  "BFK".  The
Trust's  investment  objective is to provide  current income exempt from regular
Federal  income tax. The Trust seeks to achieve  this  objective by investing in
tax-exempt general obligation and revenue bonds issued by city, county and state
municipalities  throughout the United States. The Trust will invest at least 80%
of its total  assets  in  municipal  bonds  that at the time of  investment  are
investment  grade  quality  (rated "AAA" to "BBB" by a major rating agency or of
equivalent  quality).  The  Trust may  invest  up to 20% of its total  assets in
municipal bonds that at the time of investment are non-investment  grade quality
(rated "BB" or "B" by a major rating agency or of equivalent quality).

     The table below  summarizes  the changes in the Trust's stock price and net
asset value:

                              --------------------------------------------------
                              4/30/02   10/31/01    CHANGE      HIGH       LOW
--------------------------------------------------------------------------------
SHARE PRICE                   $13.32     $14.75     (9.69)%    $14.99    $12.86
--------------------------------------------------------------------------------
NET ASSET VALUE (NAV)         $13.60     $14.30     (4.90)%    $14.49    $13.34
--------------------------------------------------------------------------------

THE FIXED INCOME MARKETS

     Economic  performance  was mixed  during the  semi-annual  period  although
increasingly  positive  economic  data  surfaced  as time  progressed.  The U.S.
economy  showed signs of a rebound on the heels of strong  consumer and military
spending,  which helped to overcome the  devastation of September  11th. The Fed
also provided further monetary stimulus by cutting interest rates two additional
times prior to year-end,  leaving the federal  funds rate at 1.75%.  This was in
addition to nine previous  interest rate  reductions by the Fed during 2001. The
Consumer  Confidence  Index  initially  reached its lowest  level in eight years
during November, but marked a steady climb during the remainder of the period as
investors readily anticipated an economic recovery. The economy continued to see
increasingly  optimistic data emerge throughout the first quarter of 2002. Gross
Domestic Product ("GDP") during the first quarter rose 5.6%, the fastest rate in
two years, and the manufacturing  sector saw substantial gains as the Purchasing
Managers  Index  indicated  expansion for the first time in 19 months.  Although
productivity  increased  8.6% during the first  quarter,  unemployment  in April
reached 6.0%. However,  the unexpectedly high unemployment number is believed to
be a result of recent legislation prompting many to apply for extended benefits.
After  surprising  growth in the first quarter of 2002, the fixed income markets
came under pressure  following the March 19th  announcement  by the Federal Open
Market  Committee  ("FOMC")  to leave  rates  steady,  citing a bias  shift from
"potential  weakness" to  "neutral."  The equity  markets did not  significantly
benefit  from  the  emergence  of the  strong  growth  indicators  as they  were
challenged by several high profile  bankruptcies.  Closing out the period, April
saw the  largest  advancement  in retail  sales in six months  and  inflationary
pressures remain relatively in check. However,  concerns regarding the corporate
environment  and  violence in the Middle East and Asia have left many  investors
apprehensive  about the markets.  Going forward,  although low inventory  levels
should  continue  to provide  support for  manufacturing  data,  concerns  exist
surrounding the long-term strength of the highly leveraged consumer.

     Following a steepening of the yield curve  throughout the majority of 2001,
yields over the period trended  higher causing the curve to flatten.  Signs of a
recovering  economy  caused  yields to rise in sympathy with  expectations  of a
higher fed funds rate by year-end.  The 5- to 10-year portion of the yield curve
came  under  the most  pressure,  rising 93 and 86 basis  points,  respectively,
during the period.  Yields on 2- and 30-year maturities also suffered during the
period rising 80 and 72 basis points,  respectively.  After struggling following
the FOMC's  announcement  of a bias shift in March,  Treasuries  bounced back in
April.  April's performance was driven by economic pessimism,  which surfaced as
enthusiasm  for a rapid economic  recovery  waned amidst  tensions in the Middle
East,  cautious  corporate  earnings  announcements and government  reports of a
slower growth pattern. Looking ahead, a budget surplus of only $78 billion and a
30% decline in tax revenues for 2001 has caused Treasury finances to deteriorate
sharply and should result in larger auction sizes.  However,  the allowable debt
limit set by Congress  will soon be reached,  possibly  leading the  Treasury to
pursue  additional  methods of  financing.  As of April 30,  2002,  the  10-year
Treasury was yielding 5.09% versus 4.23% on October 31, 2001.


                                       2
<PAGE>

     On a tax-adjusted basis,  municipal bonds outperformed the taxable domestic
bond market for the semi-annual period ended April 30, 2002, returning 1.76% (as
measured by the LEHMAN BROTHERS  MUNICIPAL BOND INDEX at a tax bracket of 38.6%)
versus -0.01% for the LEHMAN BROTHERS AGGREGATE INDEX. Strong  institutional and
retail  demand for  municipal  bonds  allowed the sector to show  outperformance
versus  Treasuries  across the entire curve.  Demand was driven primarily by two
factors:  yields on municipal  securities remain  attractive versus  alternative
fixed income  investments,  and continued  volatility in the equity  markets led
investors to seek  diversification.  Strong  demand was met by  significant  new
issuance as the first quarter of 2002 posted a 10% increase over the same period
in 2001 and was the largest first quarter  total on record.  In April,  new bond
issuance  continued  its strong trend with a 12% increase  from a year  earlier,
bringing total year-to-date issuance to $87 billion. Similar to Treasuries,  the
municipal  yield  curve  flattened  over  the  period  as  yields  on  short  to
intermediate maturities rose more quickly than long-term rates.

THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY

     The Trust's portfolio is actively managed to diversify  exposure to various
sectors,  issuers,  revenue sources and security types.  BlackRock's  investment
strategy  emphasizes  a  relative  value  approach,  which  allows  the Trust to
capitalize  upon  changing  market  conditions  by rotating  municipal  sectors,
credits and coupons.

     Additionally, the Trust employs leverage to enhance its income by borrowing
at short-term  municipal  rates and  investing  the proceeds in longer  maturity
issues that have higher  yields.  The degree to which the Trust can benefit from
its use of leverage  may affect its ability to pay high monthly  income.  At the
end of the semi-annual period, the Trust's leverage amount was approximately 37%
of total assets.

     Municipals  outperformed  Treasuries  for the period  due to strong  retail
demand despite record issuance.  The curve flattened over the period as rates at
the short end of the curve rose rapidly in anticipation of the Fed raising rates
in an economic recovery.  Rates at the long end of the curve rose moderately and
the curve  remains  steep on a historical  basis.  We continue to focus on bonds
with higher coupons as they provide the most  attractive  income stream and also
tend to have superior performance in a rising rate environment.

     The following charts show the Trust's asset  composition and credit quality
allocations:

--------------------------------------------------------------------------------
                                SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR                                 APRIL 30, 2002     OCTOBER 31, 2001
--------------------------------------------------------------------------------
Hospital                                    25%                  23%
--------------------------------------------------------------------------------
Industrial & Pollution Control              21%                  12%
--------------------------------------------------------------------------------
School                                      11%                  13%
--------------------------------------------------------------------------------
Tobacco                                     11%                  7%
--------------------------------------------------------------------------------
Other                                       10%                  6%
--------------------------------------------------------------------------------
Housing                                     6%                   2%
--------------------------------------------------------------------------------
City, County & State                        5%                   7%
--------------------------------------------------------------------------------
Special Tax                                 4%                   1%
--------------------------------------------------------------------------------
Transportation                              3%                   18%
--------------------------------------------------------------------------------
Water & Sewer                               3%                   10%
--------------------------------------------------------------------------------
Power                                       1%                   1%
--------------------------------------------------------------------------------

                                       3
<PAGE>

--------------------------------------------------------------------------------
CREDIT RATING*                         APRIL 30, 2002     OCTOBER 31, 2001
--------------------------------------------------------------------------------
AAA/Aaa                                     11%                  30%
--------------------------------------------------------------------------------
AA/Aa                                       18%                  26%
--------------------------------------------------------------------------------
A/A                                         48%                  31%
--------------------------------------------------------------------------------
BBB/Baa                                     14%                   8%
--------------------------------------------------------------------------------
BB/Ba                                        7%                   3%
--------------------------------------------------------------------------------
Not Rated                                    2%                   2%
--------------------------------------------------------------------------------

----------
*    Using the higher of Standard & Poor's, Moody's or Fitch's rating.

     We look  forward to  continuing  to manage  the Trust to  benefit  from the
opportunities  available to investors in the investment grade municipal  market.
We  thank  you for your  investment  and  continued  interest  in the  BlackRock
Municipal  Income Trust.  Please feel free to call our marketing center at (800)
227-7BFM  (7236) if you have any specific  questions  that were not addressed in
this report.

Sincerely,


/s/ Robert S. Kapito                   /s/ Kevin M. Klingert
--------------------                   ---------------------
Robert S. Kapito                       Kevin M. Klingert
Vice Chairman and Portfolio Manager    Managing Director and Portfolio Manager

--------------------------------------------------------------------------------
                        BLACKROCK MUNICIPAL INCOME TRUST
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange:                                 BFK
--------------------------------------------------------------------------------
Initial Offering Date:                                          July 27, 2001
--------------------------------------------------------------------------------
Closing Share Price as of 4/30/02:                                 $13.32
--------------------------------------------------------------------------------
Net Asset Value as of 4/30/02:                                     $13.60
--------------------------------------------------------------------------------
Yield on Closing Share Price as of 4/30/02 ($13.32)(1):              6.93%
--------------------------------------------------------------------------------
Current Monthly Distribution per Share(2):                         $ 0.076875
--------------------------------------------------------------------------------
Current Annualized Distribution per Share(2):                      $ 0.922500
--------------------------------------------------------------------------------
(1)  Yield on  closing  share  price  is  calculated  by  dividing  the  current
     annualized distribution per share by the closing share price.
(2)  The distribution is not constant and is subject to change.

                         PRIVACY PRINCIPLES OF THE TRUST

     The Trust is committed to maintaining the privacy of shareholders and to
safeguarding its non-public personal information. The following information is
provided to help you understand what personal information the Trust collects,
how we protect that information and why, in certain cases, we may share
information with select other parties.

     Generally, the Trust does not receive any non-public personal information
relating to its shareholders, although certain nonpublic personal information of
its shareholders may become available to the Trust. The Trust does not disclose
any non-public personal information about its shareholders or former
shareholders to anyone, except as permitted by law or as is necessary in order
to service shareholder accounts (for example, to a transfer agent or third party
administrator).

     The Trust restricts access to non-public personal information about the
shareholders to BlackRock employees with a legitimate business need for the
information. The Trust maintains physical, electronic and procedural safeguards
designed to protect the non-public personal information of its shareholders.

                                       4
<PAGE>

--------------------------------------------------------------------------------
BLACKROCK MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS APRIL 30, 2002 (UNAUDITED)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
          PRINCIPAL
           AMOUNT                                                                   OPTION CALL        VALUE
RATING*    (000)                   DESCRIPTION                                      PROVISIONS+       (NOTE 1)
---------------------------------------------------------------------------------------------------------------
<S>      <C>         <C>                                                          <C>               <C>
                     LONG-TERM INVESTMENTS--161.0%
                     ALABAMA--4.5%
Baa2      $12,000    Courtland Ind. Dev. Brd. P.C.R.,
                       Champion Intl. Corp. Proj., 6.15%, 6/01/19 ...............    6/05 @ 102    $ 12,026,280
A2         15,000    Huntsville Hlth. Care Auth. Rev.,
                       Ser. B, 5.75%, 6/01/32 ...................................    6/12 @ 101      14,667,300
                                                                                                  -------------
                                                                                                     26,693,580
                                                                                                  -------------
                     ALASKA--2.8%
                     No. Tobacco Sec. Corp., Tobacco Settlement Rev.,
Aa3        10,500      5.50%, 6/01/29 ...........................................    6/11 @ 100       9,787,785
Aa3         6,500      6.50%, 6/01/31 ...........................................    6/10 @ 100       6,845,865
                                                                                                  -------------
                                                                                                     16,633,650
                                                                                                  -------------
                     ARIZONA--1.2%
A3       7,000       SCOTTSDALE IND. DEVEL. AUTH. HOSP. REV.,
                       SCOTTSDALE HTLH. CARE, 5.80%, 12/01/31 ...................   12/11 @ 101       6,865,460
                                                                                                  -------------
                     CALIFORNIA--11.9%
A-         25,500    California Infrastructure & Econ. Dev. Rev.,
                       J David Gladstone Inst. Proj., 5.25%, 10/01/34 ...........   10/11 @ 101      24,102,855
                     Foothill / Eastn. Transp. Corridor Agcy. Toll Road Rev.,
BBB-       54,635      Zero Coupon, 1/15/32 .....................................  1/10 @ 27.370      8,247,153
BBB-       20,535      Zero Coupon, 1/15/34 .....................................  1/10 @ 24.228      2,710,826
BBB-       75,000      Zero Coupon, 1/15/38 .....................................  1/10 @ 19.014      7,656,750
                     Los Angeles Regl. Arpt. Impt. Corp. Lease Rev.,
BB         14,750      American Airlines Inc., Ser. C, 7.50%, 12/01/24 ..........   12/12 @ 102      14,367,385
AAA        13,320      Facs. Laxfuel Corp. L.A. Intl., 5.50%, 1/01/32, AMBAC ....    1/12 @ 100      13,186,800
                                                                                                  -------------
                                                                                                     70,271,769
                                                                                                  -------------
                     COLORADO--0.6%
BBB+        3,500    Denver Hlth. & Hosp. Auth. Hlth. Care Rev., Ser. A,
                       6.00%, 12/01/31 ..........................................    12/11@100        3,443,370
                                                                                                  -------------
                     CONNECTICUT--9.0%
A3         31,840    Connecticut St. Dev. Auth. P.C.R.,
                       Connecticut Lt. & Pwr., Ser. A, 5.85%, 9/01/28 ...........    10/08 @ 102     32,254,557
BBB-       20,940    Mohegan Tribe Indians, Pub. Impvt. Priority Distr.,
                       6.25%, 1/01/31 ...........................................     1/11 @ 101     20,930,577
                                                                                                  -------------
                                                                                                     53,185,134
                                                                                                  -------------

                     DISTRICT OF COLUMBIA--2.0%
                     Dist. of Columbia Rev., Georgetown Univ., Ser. A, MBIA,
AAA        15,600      Zero Coupon, 4/01/36 .....................................   4/11 @ 22.875     2,080,104
AAA        51,185      Zero Coupon, 4/01/37 .....................................   4/11 @ 21.546     6,418,087
A1          3,305    Dist. of Columbia Tobacco Settlement Fin., 6.50%, 5/15/33 ..   No. Opt. Call     3,390,368
                                                                                                  -------------
                                                                                                     11,888,559
                                                                                                  -------------
                     FLORIDA--15.6%
Baa2        4,600    Escambia Cnty. P.C.R., Champion Intl. Corp. Proj.,
                       6.40%, 9/01/30 ...........................................    9/06 @ 102       4,703,132
A-         14,670    Highlands Cnty. Hlth. Facs. Auth. Rev.,
                       Hosp. Adventist/Sunbelt, Ser. A, 6.00%, 11/15/31 .........   11/11 @ 101      14,778,851
                     Jacksonville Econ. Dev. Comm. Hlth. Facs. Rev., Mayo Clinic,
AA         15,000      Ser. B, 5.50%, 11/15/36 ..................................   11/11 @ 101      14,847,450
AA         20,000      Ser. C, 5.50%, 11/15/36 ..................................   11/11 @ 101      19,827,000
Aa3        29,410    Jacksonville Elec. Auth. Wtr. & Swr. Sys. Rev.,
                       Ser. C, 5.25%, 10/01/37 ..................................   10/06 @ 100      28,952,675
BBB-        9,000    Martin Cnty. Indl. Dev. Auth., Indiantown
                       Cogeneration Proj., Ser. A, 7.875%, 12/15/25 .............   12/04 @ 102       9,229,140
                                                                                                  -------------
                                                                                                     92,338,248
                                                                                                  -------------
</TABLE>

                       See Notes to Financial Statements.


                                        5
<PAGE>


<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
          PRINCIPAL
           AMOUNT                                                                   OPTION CALL        VALUE
RATING*    (000)                   DESCRIPTION                                      PROVISIONS+       (NOTE 1)
---------------------------------------------------------------------------------------------------------------
<S>      <C>         <C>                                                          <C>               <C>
                     GEORGIA--0.7%
BBB       $ 4,000    Richmond Cnty. Dev. Auth., Environ. Impvt. Rev., Intl.
                       Paper Co. Proj., Ser. A, 6.00%, 2/01/25 ..................    2/12 @ 101    $  3,944,000
                                                                                                  -------------
                     IDAHO--2.9%
AAA        16,970    Univ. Idaho. Rev., Student Fee Hsg. Impvt. Proj.,
                       5.40%, 4/01/41, FGIC......................................    4/11 @ 100      17,235,920
                                                                                                  -------------
                     ILLINOIS--21.4%
                     Bolingbrook, G.O., Ser. B, FGIC,
AAA         7,120      Zero Coupon, 1/01/33 .....................................   No. Opt Call      1,195,591
AAA        14,085      Zero Coupon, 1/01/34 .....................................   No. Opt Call      2,230,923
A-          7,095    Illinois Dev. Fin. Auth. Hosp. Rev., Adventist Hlth.
                       Sys./Sunbelt Obl., 5.65%, 11/15/24 .......................    11/09 @ 101      6,705,413
A          25,000    Illinois Dev. Fin. Auth. P.C.R., Ser. C, 5.95%, 8/15/26 ....    12/06 @ 101     25,077,250
Aa1        53,000    Illinois Edl. Facs. Auth. Rev., Univ. of Chicago, Ser. A,
                       5.25%, 7/01/41 ...........................................     7/11 @ 101     51,388,270
AAA        63,470    Illinois Sports Facs. Auth., Zero Coupon, 6/15/30, AMBAC ...     6/15 @ 101     39,659,864
                                                                                                  -------------
                                                                                                    126,257,311
                                                                                                  -------------
                     INDIANA--5.6%
A+          9,000    Indiana Hlth. Fac. Hosp. Rev., Methodist Hosp. Inc.,
                       5.50%, 9/15/31 ...........................................     9/11 @ 100      8,696,700
                     Petersburg P.C.R., Indiana Pwr. & Lt. Conv.,
A3         10,000     5.90%, 12/01/24 ...........................................     8/11 @ 102      9,427,100
A3         16,000     5.95%, 12/01/29 ...........................................     8/11 @ 102     14,914,560
                                                                                                  -------------
                                                                                                     33,038,360
                                                                                                  -------------
                     IOWA--6.6%
A1         45,000    Iowa Tobacco Settlement Auth. Rev., Ser. B,
                       5.60%, 6/01/35 ...........................................     6/11 @ 101     39,066,300
                                                                                                  -------------
                     KANSAS--2.0%
A3         11,500    Wyandotte Cnty., Gen. Motors Corp. Proj., 6.00%, 6/01/25 ...     3/12 @ 101     11,579,465
                                                                                                  -------------
                     KENTUCKY--1.5%
AAA         9,090    Kentucky Hsg. Corp. Hsg. Rev., Ser. F, 5.45%, 1/01/32,
                       FNMA .....................................................     7/11 @ 100      8,931,834
                                                                                                  -------------
                     LOUISIANA--10.8%
A          21,425    Louisiana Local Gov't. Environ. Facs. & Cmnty. Dev. Auth. Rev.,
                       Cap. Projs. & Equip. Acquisition, 6.55%, 9/01/25, ACA ....   No Opt. Call     23,234,127
A1         45,000    Tobacco Settlement Fin. Corp. Rev., Ser. 2001 B,
                       5.875%, 5/15/39 ..........................................     5/11 @ 101     40,559,400
                                                                                                  -------------
                                                                                                     63,793,527
                                                                                                  -------------
                     MARYLAND--1.4%
NR          8,000++  MuniMae TE Bond Subsidiary LLC, Ser. A, 6.875%, 6/30/09 ....     6/09 @ 100      8,284,160
                                                                                                  -------------
                     MICHIGAN--6.6%
AA         17,210    Kent Hosp. Fin. Auth. Rev., Spectrum Hlth., Ser. A,
                       5.50%, 1/15/31 ...........................................     7/11 @ 101     17,018,108
A-         22,500    Michigan St. Strategic Fund Ltd. Oblig. Rev., Detroit Edison
                       Poll. Ctrl., Ser. C, 5.45%, 9/01/29 ......................     9/11 @ 100     21,880,125
                                                                                                  -------------
                                                                                                     38,898,233
                                                                                                  -------------
                     MISSISSIPI--3.1%
A2         18,680    Gulfport Hosp. Fac. Rev., Mem. Hosp. Gulfport Proj.,
                       Ser. A, 5.75%, 7/01/31 ...................................     7/11 @ 100     18,193,012
                                                                                                  -------------
                     NEW HAMPSHIRE--0.6%
A+          3,500    New Hampshire Hlth. & Edl. Facs. Auth. Rev., Exeter Hosp.
                       Proj., 5.75%, 10/01/31 ...................................     10/11 @ 101     3,384,920
                                                                                                  -------------
                     NEW JERSEY--5.4%
BB-        32,435    New Jersey Econ. Dev. Auth. Rev., Continental Airlines Inc.
                       Proj., 7.00%, 11/15/30 ...................................     11/10 @ 101    31,763,920
                                                                                                  -------------
                     NEW YORK--3.1%
                     Charter Mac Equity Issuer Trust,
NR         11,000++   Ser. A, 6.30%, 6/30/49 ....................................      6/09 @ 100    10,942,690
NR          1,000++   Ser. A, 6.625%, 6/30/09 ...................................      6/09 @ 100     1,025,720
NR          6,500++   Ser. B, 6.80%, 11/30/50 ...................................     11/10 @ 100     6,457,945
                                                                                                  -------------
                                                                                                     18,426,355
                                                                                                  -------------
</TABLE>

                       See Notes to Financial Statements.


                                       6
<PAGE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
          PRINCIPAL
           AMOUNT                                                                   OPTION CALL        VALUE
RATING*    (000)                   DESCRIPTION                                      PROVISIONS+       (NOTE 1)
---------------------------------------------------------------------------------------------------------------
<S>      <C>         <C>                                                          <C>               <C>
                     OHIO--2.5%
BBB       $14,500    Ohio St. Air Quality Dev. Auth. P.C.R., Cleveland Elec.
                       Illuminating Co. Proj., Ser. B, 6.00%, 8/01/20 ...........    8/07 @ 102    $ 14,512,760
                                                                                                  -------------
                     PENNSYLVANIA--4.0%
A3          6,500    Pennsylvania Econ. Dev. Fin. Auth. Exempt Facs. Rev., Amtrak
                       Proj., Ser. A, 6.375%, 11/01/41 ..........................    5/11 @ 101       6,486,155
A          17,250    Pennsylvania St. Higher Edl. Facs. Auth.  Rev., Univ. of
                       Pennsylvania Hlth. Svcs., Ser. A, 5.75%, 1/01/22 .........    1/06 @ 101      17,084,918
                                                                                                  -------------
                                                                                                     23,571,073
                                                                                                  -------------
                     SOUTH CAROLINA--2.8%
                     Greenwood Cnty. Hosp. Rev., Self Mem. Hosp. Facs.,
A+          3,280      5.50%, 10/01/26 ..........................................   10/11 @ 100       3,156,410
A+          3,250      5.50%, 10/01/31 ..........................................   10/11 @ 100       3,091,660
AA          3,750    So. Carolina Jobs Econ. Dev. Auth. Hosp. Facs. Rev.,
                       Georgetown Mem. Hosp., 5.375%, 2/01/30, GNMA .............    8/11 @ 100       3,616,613
A1          6,750    So. Carolina Tobacco Settlement Auth. Rev., Ser. B,
                       6.375%, 5/15/30 ..........................................  No Opt. Call       6,807,577
                                                                                                  -------------
                                                                                                     16,672,260
                                                                                                  -------------
                     TEXAS--17.1%
BB         26,310    Dallas Ft. Worth Intl. Arpt. Fac. Impvt. Rev., Amer.
                       Airlines Inc., 6.375%, 5/01/35 ...........................   11/09 @ 101      20,801,475
                     Harris Cnty. Houston Sports Auth. Rev., MBIA,
AAA        12,580      Ser. A, Zero Coupon, 11/15/38 ............................ 11/30 @ 61.166      1,509,349
AAA         5,000      Ser. H, Zero Coupon, 11/15/35 ............................ 11/31 @ 78.178        714,000
BBB        20,000    Port Corpus Christi Auth., Celanese Proj., Ser. B,
                       6.70%, 11/01/30 ..........................................    5/12 @ 101      20,027,000
BBB+        4,450    Sabine River Auth. P.C.R., TXU Elec. Co. Proj.,
                       Ser. B, Zero Coupon, 11/01/2011 ..........................  No Opt. Call       4,454,984
A3          6,010    Texas St. Affordable Hsg. Corp. Mult. Fam. Hsg. Rev.,
                       5.80%, 11/01/26 ..........................................   11/11 @ 102       5,849,233

BBB-        4,435    Amer. Oppty. Hsg. Portfolio, Ser. B, 8.00%, 3/01/32 ........    9/12 @ 102       4,468,750
A3         18,605    Arborstone/Baybrook Oaks, Ser. A, 5.85%, 11/01/31 ..........   11/11 @ 102      18,071,037
BBB-        6,630    So. Texas Pptys. Corp., Ser. B, 8.00%, 3/01/32 .............    9/12 @ 102       6,680,454
AAA        13,410    Texas St. Dept. Hsg. & Cmnty. Affairs, Ser. A,
                       5.35%, 7/01/33 ...........................................    7/11 @ 100      12,955,669
Baa1        5,500    Tyler Hlth. Facs. Dev. Corp., Mother Frances Hosp. Regl.
                       Hlth., 6.00%, 7/01/31 ....................................    7/12 @ 100       5,295,125
                                                                                                  -------------
                                                                                                    100,827,076
                                                                                                  -------------
                     VIRGINIA--9.2%
                     Arlington Cnty. Ind. Dev. Auth., Virginia Hosp. Ctr.
                       Arlington Hlth. Sys.,
A2         15,000      5.25%, 7/01/25 ...........................................    7/11 @ 101      14,397,600
A2         34,000      5.25%, 7/01/31 ...........................................    7/11 @ 101      32,025,620
BBB         8,000    Braxton Cnty. Sld. Wst. Auth., Weyerhaeuser Co. Proj.,
                       6.50%, 4/01/25 ...........................................   4/05 at 102       8,144,000
                                                                                                  -------------
                                                                                                     54,567,220
                                                                                                  -------------
                     WASHINGTON--0.3%
Baa1        2,000    Energy Northwest Washington Wind Proj. Rev.,
                       Ser. B, 6.00%, 7/01/23 ...................................   1/07 @ 103        1,964,380
                                                                                                  -------------
                     WISCONSIN--5.8%
A+         13,750    Wisconsin St. Hlth. & Edl. Facs. Auth. Rev., Froedert & Cmnty.
                       Hlth. Obl., 5.375%, 10/01/30 .............................   10/11 @ 101      12,815,412
A          22,000    Wheaton Franciscan Svcs., 5.75%, 8/15/30 ...................    2/12 @ 100      21,670,220
                                                                                                  -------------
                                                                                                     34,485,632
                                                                                                  -------------
                     TOTAL LONG-TERM INVESTMENTS (COST $973,428,793) ............                   950,717,488
                                                                                                  -------------
</TABLE>

                       See Notes to Financial Statements.


                                       7

<PAGE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
          PRINCIPAL
           AMOUNT                                                                   OPTION CALL        VALUE
RATING*    (000)                   DESCRIPTION                                      PROVISIONS+       (NOTE 1)
---------------------------------------------------------------------------------------------------------------
<S>      <C>         <C>                                                          <C>               <C>
                     SHORT-TERM INVESTMENTS**--3.0%
                     ALABAMA--1.0%
A1+        $6,000    Jefferson Cnty., G.O., Ser. B, 1.70%, 5/01/02, FRDD ........       N/A        $  6,000,000
                                                                                                  -------------
                     MARYLAND--0.7%
A1+         4,000    Maryland Str Hlth. High Edl. Facs., Adj. Adj. Pooled Loan
                       Prog. Ser. D, 1.70%, 5/02/02 FRWD ........................       N/A           4,000,000
                                                                                                  -------------
                     NEW YORK--1.3%
A1+         1,600    New York City G.O., Subseries B-2, 1.55%, 5/01/02, FRDD ....       N/A           1,600,000
A1+         6,200    New York St. Energy Research & Dev. Auth. P.C.R.,
                       Niagara Power Corp. Proj. B, 1.80%, 5/01/02, FRDD ........       N/A           6,200,000
                                                                                                  -------------
                                                                                                      7,800,000
                                                                                                  -------------
                     TOTAL SHORT-TERM INVESTMENTS (COST $17,800,000) ............                    17,800,000
                                                                                                  -------------
                     TOTAL INVESTMENTS--164.0% (COST $991,228,793) ..............                   968,517,488
                     Liabilities in excess of other assets--(0.5)% ..............                    (2,753,284)
                     Preferred stock at redemption value, including dividends
                       payable--(63.5)% .........................................                  (375,196,089)
                                                                                                  -------------
                     NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .........                  $590,568,115
                                                                                                  =============
</TABLE>

----------
*    Using the higher of Standard & Poor's, Moody's or Fitch's rating.
**   For purposes of amortized cost valuation, the maturity date of these
     instruments 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.
+    Date (month/year) and prices of the earliest optional call or redemption.
     There may be other call provisions at varying prices at later dates.
++   Security is exempt from registration under Rule 144A of the Securities Act
     of 1933. These securities may be resold in transactions exempt from
     registration to qualified institutional buyers. As of April 30, 2002, the
     Trust held 4.5% of its net assets in securities restricted as to sale.

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
                                           KEY TO ABBREVIATIONS:
<S>                                                     <C>
ACA   -- American Capital Access                        FRWD   -- Floating Rate Weekly Demand
AMBAC -- American Municipal Bond Assurance Corporation  GNMA   -- Government National Mortgage Association
FGIC  -- Financial Guaranty Insurance Company           G.O.   -- General Obligation
FNMA  -- Federal National Mortgage Association          MBIA   -- Municipal Bond Insurance Association
FRDD  -- Floating Rate Daily Demand                     P.C.R. -- Pollution Control Revenue
----------------------------------------------------------------------------------------------------------
</TABLE>

                       See Notes to Financial Statements.


                                       8
<PAGE>
--------------------------------------------------------------------------------
BLACKROCK
MUNICIPAL INCOME TRUST
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2002 (Unaudited)
--------------------------------------------------------------------------------

ASSETS
Investments, at value (cost $991,228,793) (Note 1) .........  $  968,517,488
Cash .......................................................         119,482
Receivable for investments sold ............................      24,411,415
Interest receivable ........................................      16,500,237
Other ......................................................          35,865
                                                              --------------
                                                               1,009,584,487
                                                              --------------
LIABILITIES
Payable for investments purchased ..........................      39,855,941
Dividends payable--common shares ...........................       3,338,930
Investment advisory fee payable (Note 2) ...................         276,732
Deferred Trustees fees (Note 1) ............................          10,574
Other accrued expenses .....................................         338,106
                                                              --------------
                                                              $   43,820,283
                                                              --------------
PREFERRED STOCK AT REDEMPTION VALUE
$.001 par value per share and $25,000 liquidation
  value per share applicable to 15,005 shares,
    including dividends payable (Note 1 & 4) ...............     375,196,089
                                                              --------------
NET ASSETS APPLICABLE TO
  COMMON SHAREHOLDERS ......................................  $  590,568,115
                                                              ==============
Composition of Net Assets Applicable to
  Common Shareholders:
    Par value (Note 4) .....................................  $       43,433
    Paid-in capital in excess of par .......................     616,441,964
  Undistributed net investment income (Note 1) .............       2,818,748
  Accumulated net realized loss ............................      (6,024,725)
  Net unrealized depreciation (Note 1) .....................     (22,711,305)
                                                              --------------
Net assets applicable to common shareholders,
  April 30, 2002 ...........................................  $  590,568,115
                                                              ==============
Net asset value per common share of
  beneficial interest:
  ($590,568,115 / 43,433,236 common shares
  of beneficial interest issued and outstanding) ...........          $13.60
                                                                      ======

--------------------------------------------------------------------------------
BLACKROCK
MUNICIPAL INCOME TRUST
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 2002 (UNAUDITED)
--------------------------------------------------------------------------------

NET INVESTMENT INCOME
Income
  Interest (Note 1) ........................................    $ 28,320,107
                                                              --------------
Expenses
  Investment advisory ......................................       2,886,755
  Auction agent ............................................         479,798
  Custodian ................................................          79,736
  Trustees .................................................          56,876
  Reports to shareholders ..................................          30,537
  Registration .............................................          30,289
  Independent accountants ..................................          19,050
  Transfer agent ...........................................          16,938
  Legal ....................................................           5,408
  Miscellaneous ............................................         105,811
                                                              --------------
    Total expenses .........................................       3,711,198
  Less fees waived by advisor (Note 2) .....................      (1,202,815)
  Less fees paid indirectly (Note 2) .......................         (68,728)
                                                              --------------
  Net expenses .............................................       2,439,655
                                                              --------------
Net investment income ......................................      25,880,452
                                                              --------------
REALIZED AND UNREALIZED LOSS
ON INVESTMENTS
Net realized loss on investments ...........................      (5,498,454)
Net change in unrealized appreciation
  on investments ...........................................     (27,942,574)
                                                              --------------
Net loss on investments ....................................     (33,441,028)
                                                              --------------
DIVIDENDS TO PREFERRED SHAREHOLDERS
FROM NET INVESTMENT INCOME .................................      (2,808,210)
                                                              --------------
NET DECREASE IN NET ASSETS APPLICABLE
TO COMMON SHAREHOLDERS RESULTING
FROM OPERATIONS ............................................    $(10,368,786)
                                                              ==============
                       See Notes to Financial Statements.

                                       9
<PAGE>

--------------------------------------------------------------------------------
BLACKROCK MUNICIPAL INCOME TRUST
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                                     FOR THE PERIOD
                                                                                   SIX MONTHS        JULY 27, 2001*
                                                                                      ENDED              THROUGH
                                                                                 APRIL 30, 2002    OCTOBER 31, 2001(1)
                                                                                 --------------    -------------------
<S>                                                                              <C>               <C>
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

OPERATIONS:
  Net investment income ........................................................  $ 25,880,452        $ 7,006,679
  Net realized loss on investments .............................................    (5,498,454)          (526,271)
  Net change in unrealized appreciation on investments .........................   (27,942,574)         5,231,269
  Dividends to preferred shareholders from net investment income ...............    (2,808,210)          (562,667)
  Dividends to preferred shareholders in excess of net investment income .......            --            (18,927)
                                                                                  ------------      -------------
    Net increase (decrease) in net assets resulting from operations ............   (10,368,786)        11,130,083
                                                                                  ------------      -------------

DIVIDENDS TO COMMON SHAREHOLDERS:
  From net investment income ...................................................   (20,017,804)        (6,444,012)
  In excess of net investment income ...........................................            --           (216,763)
                                                                                  ------------      -------------
    Total dividends ............................................................   (20,017,804)        (6,660,775)
                                                                                  ------------      -------------

CAPITAL SHARE TRANSACTIONS:
  Net proceeds from the issuance of common shares ..............................            --        535,236,781
  Common shares issued in connection with the reinvestment of common dividends .     1,706,088             38,778
  Net proceeds from underwriters' over-allotment option exercised ..............            --         79,503,750
                                                                                  ------------      -------------
     Net proceeds from capital share transactions ..............................     1,706,088        614,779,309
                                                                                  ------------      -------------
       Total increase (decrease) ...............................................   (28,680,502)       619,248,617
                                                                                  ------------      -------------

NET ASSETS
Beginning of period ............................................................   619,248,617                 --
                                                                                  ------------      -------------
End of period (including undistributed and distributions in excess of net
  investment income of $2,818,748 and $235,690, respectively) ..................  $590,568,115      $ 619,248,617
                                                                                  ============      =============
</TABLE>

----------
*    Commencement of investment operations (Note 1).
(1)  Prior year amounts have been restated to conform to the current period's
     presentation under the provisions of EITF D-98 (Note 1).


                       See Notes to Financial Statements.


                                       10
<PAGE>
--------------------------------------------------------------------------------
BLACKROCK MUNICIPAL INCOME TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                         FOR THE PERIOD
                                                                     SIX MONTHS         JULY 27, 2001(1)
                                                                        ENDED                THROUGH
                                                                   APRIL 30,2002       OCTOBER 31, 2001(2,3)
                                                                   --------------     -----------------------
<S>                                                                <C>                 <C>
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period(4) ..........................       $ 14.30                $ 14.33
                                                                         -------               -------
Investment operations:
  Net investment income ..........................................          0.60                   0.17
  Net realized and unrealized gain (loss) on investments .........         (0.78)                  0.12
  Dividends and distributions to preferred shareholders from:
    Net investment income ........................................         (0.06)                 (0.01)
    In excess of net investment income ...........................         --                     (0.00)(5)
                                                                         -------                -------
Net increase (decrease) from investment operations ...............         (0.24)                  0.28
                                                                         -------                -------
Dividends and distributions to preferred shareholders from:
  Net investment income ..........................................         (0.46)                 (0.16)
  in excess of net investment income .............................         --                     (0.01)
                                                                         -------                -------
Total dividends and distributions ................................         (0.46)                 (0.17)
                                                                         -------                -------
Capital charges with respect to issuance of:
  Common shares ..................................................         --                     (0.03)
  Preferred shares ...............................................         --                     (0.11)
                                                                         -------                -------
Total capital charges ............................................         --                     (0.14)
                                                                         -------               -------
Net asset value, end of period(4) ................................       $ 13.60                $ 14.30
                                                                         =======                =======
Market value, end of period(4) ...................................       $ 13.32                $ 14.75
                                                                         =======                =======
TOTAL INVESTMENT RETURN(6) .......................................         (6.62)%                (1.13)%
                                                                         =======                =======
RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(7,8)
Expenses after fee waiver and fees paid indirectly ...............          0.83%                  0.61%
Expenses before fee waiver and fees paid indirectly ..............          1.26%                  0.91%
Net investment income after fee waiver, fees paid indirectly and before
  preferred share dividends ......................................          8.77%                  4.59%
Preferred share dividends ........................................          0.95%                  0.38%
Net investment income available to common shareholders ...........          7.82%                  4.21%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ..................      $595,101               $572,610
Portfolio turnover ...............................................            37%                    27%
Net assets of common shareholders, end of period (000) ...........      $590,568               $619,249
Preferred shares outstanding (000) ...............................      $375,125               $375,125
Asset coverage per preferred share, end of period ................      $ 64,358               $ 66,275
</TABLE>

----------
(1)  Commencement  of  investment  operations.  This  information  includes  the
     initial investment by BlackRock Advisors,  Inc. Net asset value immediately
     after the closing of the first public offering was $14.30 (Note 1).
(2)  Calculated using the average shares outstanding method.
(3)  Prior  periods  have been  restated  to  conform  to the  current  period's
     presentation under the provisions of EITF D-98.
(4)  Net asset value and market value are  published in BARRON'S on Saturday and
     THE WALL STREET JOURNAL on Monday.
(5)  Amount is less than $0.005 per share.
(6)  Total investment return is calculated assuming a purchase of a common share
     at the  current  market  price on the first  day and a sale at the  current
     market  price  on the  last  day  of the  period  reported.  Dividends  and
     distributions,  if any, are assumed for purposes of this calculation, to be
     reinvested at prices obtained under the Trust's dividend reinvestment plan.
     Total  investment  return does not  reflect  brokerage  commissions.  Total
     investment  returns  for less  than a full  year are not  annualized.  Past
     performance is not a guarantee of future results.
(7)  Ratios are  calculated  on the basis of income and expenses  applicable  to
     both the common and preferred  shares relative to the average net assets of
     the common shareholders.
(8)  Annualized.

The  information  above  represents the unaudited  operation  performance  for a
common share outstanding,  total investment return, ratios to average net assets
and other supplemental data for the periods indicated. This information has been
determined based upon financial information provided in the financial statements
and market value data for the Trust's common shares.


                       See Notes to Financial Statements.


                                       11
<PAGE>

--------------------------------------------------------------------------------
BLACKROCK
MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------

NOTE 1. ORGANIZATION & ACCOUNTING  POLICIES

The BlackRock  Municipal  Income Trust (the "Trust") was organized as a Delaware
business trust on March 30, 2001 and is registered as a diversified,  closed-end
management  investment  company under the  Investment  Company Act of 1940.  The
Trust had no  transactions  until July 16, 2001 when it sold 8,028 common shares
for $115,001 to BlackRock Advisors, Inc. Investment operations commenced on July
27, 2001. The Trust's  investment  objective is to provide current income exempt
from regular  Federal income tax. The ability of issuers of debt securities held
by the Trust to meet their obligations may be affected by economic  developments
in certain states, a specific industry or region. No assurance can be given that
the Trust's investment objective will be achieved.

The following is a summary of significant  accounting  policies  followed by the
Trust.

SECURITIES VALUATION:  Municipal securities  (including  commitments to purchase
such  securities  on a  "when-issued"  basis)  are valued on the basis of prices
provided by dealers or pricing services approved by the Trustees. In determining
the value of a particular security, pricing services may use certain information
with respect to transactions in such  securities,  quotations from bond dealers,
market transactions in comparable  securities and various  relationships between
securities.  Short-term  investments  may  be  valued  at  amortized  cost.  Any
securities  or other assets for which such  current  market  quotations  are not
readily  available  are valued at fair value as  determined  in good faith under
procedures  established by and under the general  supervision and responsibility
of the Trustees.

SECURITIES  TRANSACTIONS  AND INVESTMENT  INCOME:  Securities  transactions  are
recorded on trade date.  Realized and unrealized gains and losses are calculated
on the  identified  cost basis.  The Trust also  records  interest  income on an
accrual basis and amortizes  premium and accretes discount to interest income on
securities purchased using the interest method.

SEGREGATION:  In cases in which the  Investment  Company Act of 1940, as amended
and the interpretive positions of the Securities and Exchange Commission ("SEC")
require  that the  Trust  segregate  assets in  connection  with  certain  Trust
investments  (e.g., when issued  securities,  reverse  repurchase  agreements or
futures contracts), the Trust will, consistent with certain interpretive letters
issued by the SEC,  designate on its books and records cash or other liquid debt
securities  having a  market  value at least  equal  to the  amount  that  would
otherwise be required to be physically segregated.

FEDERAL  INCOME TAXES:  It is the Trust's  intention to elect to be treated as a
regulated  investment  company under the Internal Revenue Code and to distribute
sufficient net income to shareholders. For this reason and because substantially
all of the Trust's  gross income  consists of  tax-exempt  interest,  no Federal
income tax provision is required.

DIVIDENDS  AND  DISTRIBUTIONS:   The  Trust  declares  and  pays  dividends  and
distributions to common  shareholders  monthly from net investment  income,  net
realized short-term capital gains and other sources, if necessary. Net long-term
capital  gains,  if any,  in excess  of loss  carryforwards  may be  distributed
annually.  Dividends and  distributions  are recorded on the  ex-dividend  date.
Dividends and distributions to preferred shareholders are accrued and determined
as described in Note 4.

ESTIMATES: The preparation of financial statements in conformity with accounting
principles   generally  accepted  in  the  United  States  of  America  requires
management to make estimates and assumptions that affect the reported amounts of
assets and  liabilities  and disclosure of contingent  assets and liabilities at
the date of the financial  statements  and the reported  amounts of revenues and
expenses  during the reporting  period.  Actual  results could differ from those
estimates.

DEFERRED  COMPENSATION PLAN: Under a deferred  compensation plan approved by the
Board of Trustees on May 24,  2001,  non-interested  Trustees may elect to defer
receipt of all or a portion of their annual compensation.

     Deferred amounts earn a return as though equivalent dollar amounts had been
invested in common  shares of other  BlackRock  funds  selected by the Trustees.
This has the same  economic  effect as if the Trustees had invested the deferred
amounts in such other BlackRock funds.

     The deferred  compensation  plan is not funded and  obligations  thereunder
represent  general unsecured claims against the general assets of the Trust. The
Trust may, however,  elect to invest in common shares of those funds selected by
the Trustees in order to match its deferred compensation obligations.

CHANGE IN FINANCIAL  STATEMENT  CLASSIFICATION  FOR AMPS: In accordance with the
provisions  of  EITF  D-98,   "Classification   and  Measurement  of  Redeemable
Securities,"  effective for the current period,  the Trust has  reclassified its
Auction Market  Preferred Shares ("AMPS") outside of permanent equity in the Net
Assets  section  of the  Statement  of  Assets  and  Liabilities.  In  addition,
distributions to AMPS  shareholders are now classified as a component of the net
assets  resulting from  operations on the statement of operations and changes in
net assets and as a com-


                                       12
<PAGE>
ponent of the  investment  operations  in the financial  highlights.  Prior year
amounts  presented have been restated to conform to this period's  presentation.
This change has no impact on the net assets  applicable  to common shares of the
Trust.

NOTE 2. AGREEMENTS

The Trust has an Investment  Advisory  Agreement with BlackRock  Advisors,  Inc.
(the  "Advisor"),  a  wholly  owned  subsidiary  of  BlackRock,  Inc.  BlackRock
Financial Management, Inc., a wholly owned subsidiary of BlackRock, Inc., serves
as  sub-advisor  to the Trust.  BlackRock,  Inc. is an  indirect  majority-owned
subsidiary of PNC  Financial  Services  Group,  Inc. The  investment  management
agreement covers both investment advisory and administration services.

     The  investment  advisory  fee paid to the Advisor is  computed  weekly and
payable monthly at an annual rate of 0.60% of the Trust's average weekly managed
assets.  "Managed  assets"  means the total assets of the Trust  (including  any
assets  attributable to any preferred shares that may be outstanding)  minus the
sum of accrued  liabilities (other than debt representing  financial  leverage).
The liquidation preference of the preferred shares is not a liability. The total
dollar  amounts paid to the Advisor by the Trust under the  Investment  Advisory
Agreement  for the six months  ended  April 30,  2002 and for the  period  ended
October 31, 2001 were  $1,683,940  and  $622,345,  respectively.The  Advisor has
voluntarily  agreed to waive receipt of a portion of the  investment  management
fee or other  expenses  of the Trust in the  amount of 0.25% of  average  weekly
managed assets for the first 5 years of the Trust's operations, 0.20% in year 6,
0.15% in year 7, 0.10% in year 8 and 0.05% in year 9. Pursuant to the agreement,
the Advisor  waived  fees of  $1,202,815  during the six months  ended April 30,
2002.

     Pursuant to the agreements,  the Advisor provides continuous supervision of
the investment portfolio, pays the compensation of officers of the Trust who are
affiliated  persons of the Advisor and pays  occupancy and certain  clerical and
accounting  costs.  The Trust bears all other costs and expenses,  which include
reimbursements to the Advisor for certain  operational support services provided
to the Trust.

     Pursuant to the terms of the custody agreement, the Trust receives earnings
credits from its custodian when positive cash balances are maintained, which are
used to offset custody fees. The earnings credits for the six months ended April
30, 2002, were approximately $68,728.

NOTE 3. PORTFOLIO SECURITIES

Purchases and sales of investment securities, other than short-term investments,
for  the  six  months  ended  April  30,  2002   aggregated   $358,876,269   and
$357,081,571, respectively.

     The Federal  income tax basis of the Trust's  investments at April 30, 2002
was $991,197,419,  and accordingly,  net unrealized depreciation was $22,679,931
(gross      unrealized      appreciation--$6,324,477,      gross      unrealized
depreciation--$29,004,408).

     For Federal income tax purposes,  the Trust had a capital loss carryforward
at October  31,  2001,  of  approximately  $526,271  which will  expire in 2009.
Accordingly, no capital gain distribution is expected to be paid to shareholders
until net gains have been realized in excess of such amount.

NOTE 4. CAPITAL

There are an  unlimited  number of $.001 par value common  shares of  beneficial
interest  authorized.  The Trust may classify or reclassify  any unissed  common
shares of beneficial  interest into one or more series of preferred  shares.  Of
the  43,433,236  common shares of beneficial  interest  outstanding at April 30,
2002, the Advisor owned 8,205 shares.

     Transactions  in common shares of  beneficial  interest for the period July
27, 2001  (commencement  of investment  operations) to October 31, 2001, were as
follows:
     Shares Issued in connection with initial
       public offering .................................     37,758,028
     Shares issued in connection with the
       exercise of the underwriters'
       over-allotment option ...........................      5,550,000
     Shares issued in connection with the
       reinvestment of common dividends ................          2,746
                                                             ----------
     Net increase in shares outstanding ................     43,310,774
                                                             ==========
     During the six months ended April 30, 2002, the Trust issued 122,462 common
shares of beneficial interest under its Dividend Reinvestment Plan.

     Offering  costs of  $1,284,241  incurred  in  connection  with the  Trust's
offering of common shares have been charged to paid-in  capital in excess of par
of the common shares.

     On  October  5,  2001,  the  Trust  reclassified  15,005  common  shares of
beneficial  interest and issued five series of Auction Market  Preferred  Shares
("preferred  shares") Series  M7--3,001,  Series  T7--3,001,  Series  W7--3,001,
Series R7--3,001 and Series  F7--3,001.  The preferred shares have a liquidation
value of $25,000 per share plus any accumulated  unpaid dividends.  Underwriting
discounts of $3,751,250  and offering  costs of $608,345  incurred in connection
with the preferred share offering have been charged to paid-in capital in excess
of par of the common shares.

     Dividends on Series M7,  Series T7,  Series W7, Series R7 and Series F7 are
cumulative at a rate which is reset every 7 days

                                       13
<PAGE>

based on the results of an auction.  Dividend  rates  ranged from 1.09% to 2.15%
during the six months ended April 30, 2002.

     The Trust may not declare  dividends or make other  distributions to common
shares  or  purchase  any  such  shares  if,  at the  time  of the  declaration,
distribution  or  purchase,  asset  coverage  with  respect  to the  outstanding
preferred shares would be less than 200%.

     The preferred shares are redeemable at the option of the Trust, in whole or
in part, on any dividend  payment date at $25,000 per share plus any accumulated
or unpaid  dividends  whether or not  declared.  The  preferred  shares are also
subject to mandatory  redemption  at $25,000 per share plus any  accumulated  or
unpaid dividends,  whether or not declared,  if certain requirements relating to
the  composition of the assets and  liabilities of the Trust as set forth in the
Declaration of Trust are not satisfied.

     The holders of preferred  shares have voting rights equal to the holders of
common shares (one vote per share) and will vote together with holders of common
shares as a single class. However, holders of preferred shares are also entitled
to elect two of the Trust's Trustees. In addition, the Investment Company Act of
1940 requires that, along with approval by shareholders  that might otherwise be
required, the approval of the holders of a majority of any outstanding preferred
shares,  voting separately as a class would be required to (a) adopt any plan of
reorganization  that would adversely affect the preferred  shares,  and (b) take
any action requiring a vote of security holders,  including, among other things,
changes in the Trust's  subclassification as a closed-end  investment company or
changes in its fundamental investment restrictions.

NOTE 5.  DIVIDENDS

Subsequent  to April 30,  2002,  the Board of Trustees  of the Trust  declared a
dividend of $0.076875 per common share payable June 3, 2002, to  shareholders of
record on May 15, 2002.

     For the period May 1, 2002  through  May 31,  2002,  dividends  declared on
preferred  shares totaled  $516,682 in aggregate for the  outstanding  preferred
shares.


                                       14
<PAGE>

--------------------------------------------------------------------------------
                        BLACKROCK MUNICIPAL INCOME TRUST
                           DIVIDEND REINVESTMENT PLAN
--------------------------------------------------------------------------------

     Pursuant to the Trust's  Dividend  Reinvestment  Plan (the "Plan"),  common
shareholders are  automatically  enrolled to have all distributions of dividends
and capital gains reinvested by EquiServe Trust Company, N.A. (the "Plan Agent")
in Trust shares pursuant to the Plan.  Shareholders who elect not to participate
in the Plan will  receive  all  distributions  in cash paid by check and  mailed
directly to the  shareholders  of record (or if the shares are held in street or
other nominee name, then to the nominee) by the Plan Agent.

     The Plan Agent serves as agent for the  shareholders in  administering  the
Plan.  After the Trust  declares a dividend or determines to make a capital gain
distribution, the Plan Agent will acquire shares for the participants' accounts,
depending upon the circumstances  described below, either (i) through receipt of
unissued but authorized shares from the Trust ("newly issued shares") or (ii) by
purchase  of  outstanding  shares  on the open  market,  on the New  York  Stock
Exchange or elsewhere  ("open-market  purchases").  If, on the dividend  payment
date,  the net asset value per share ("NAV") is equal to or less than the market
price per share plus  estimated  brokerage  commissions  (such  condition  being
referred to herein as "market premium"), the Plan Agent will invest the dividend
amount in newly issued shares on behalf of the participants. The number of newly
issued shares to be credited to each participant's account will be determined by
dividing the dollar amount of the dividend by the NAV on the date the shares are
issued.  However, if the NAV is less than 95% of the market price on the payment
date,  the dollar  amount of the  dividend  will be divided by 95% of the market
price on the payment date. If, on the dividend  payment date, the NAV is greater
than the  market  value per share plus  estimated  brokerage  commissions  (such
condition  being referred to herein as "market  discount"),  the Plan Agent will
invest the dividend amount in shares  acquired on behalf of the  participants in
open-market purchases.

     Participants  in the Plan may withdraw from the Plan upon written notice to
the Plan Agent and will receive  certificates  for whole Trust shares and a cash
payment for any fraction of a Trust share.

     The Plan Agent's fees for the handling of the reinvestment of dividends and
distributions  will be paid by the Trust.  However,  each participant will pay a
pro rata  share of  brokerage  commissions  incurred  with  respect  to the Plan
Agent's open market  purchases in connection with the  reinvestment of dividends
and  distributions.  The automatic  reinvestment of dividends and  distributions
will not relieve  participants  of any Federal income tax that may be payable on
such dividends or distributions.

     The Trust  reserves the right to amend or terminate  the Plan.  There is no
direct service charge to participants in the Plan;  however,  the Trust reserves
the  right  to  amend  the Plan to  include  a  service  charge  payable  by the
participants.  All correspondence  concerning the Plan should be directed to the
Plan Agent at (800) 699-1BFM or 150 Royall Street, Canton, MA 02021.


                                       15
<PAGE>

--------------------------------------------------------------------------------
                        BLACKROCK MUNICIPAL INCOME TRUST
                             ADDITIONAL INFORMATION
--------------------------------------------------------------------------------

     There have been no material changes in the Trust's investment objectives or
policies  that have not been approved by the  shareholders  or to its charter or
by-laws or in the  principal  risk factors  associated  with  investment  in the
Trust.  There have been no changes in the persons who are primarily  responsible
for the day-to-day management of the Trust's portfolio.

     Quarterly  performance  and other  information  regarding  the Trust may be
found    on    BlackRock's     website,     which    can    be    accessed    at
http://www.blackrock.com/funds/cefunds.html.   This   reference  to  BlackRock's
website is intended to allow  investors  public access to quarterly  information
regarding the Trust and is not intended to incorporate  BlackRock's website into
this report.

The  Annual  Meeting  of  Shareholders  was  held  May  23,  2002 to vote on the
following matter:

To elect two Trustees as follows:

TRUSTEE:                             CLASS           TERM            EXPIRING
-------                              -----           -----            -------
Richard E. Cavanagh .............      I            3 years            2005
James Clayburn La Force, Jr. ....      I            3 years            2005

     Trustees whose term of office  continues  beyond this meeting are Andrew F.
Brimmer,  Kent Dixon, Frank J. Fabozzi,  Laurence D. Fink, Walter F. Mondale and
Ralph L. Schlosstein.

     Shareholders  elected the two  Trustees.  The results of the voting were as
follows:

                                    VOTES FOR*    VOTES AGAINST*   ABSTENTIONS*
                                     --------      ------------     -----------
Richard E. Cavanagh .............       13,693          --               121
James Clayburn La Force, Jr. ....   42,701,712          --           526,744

----------
*    The votes represent  common and preferred  shareholders  voting as a single
     class  except for Richard E.  Cavanagh  who was voted on and elected by the
     preferred shareholders only.

     Laurence D. Fink, Chairman of the Trust's Board of Trustees, and certain of
the  officers of the Trust  listed on the cover of this Report to  Shareholders,
are also  officers of the Advisor or  Sub-Advisor.  They serve in the  following
capacities  for the Advisor or  Sub-Advisor:  Laurence D.  Fink-Chief  Executive
Officer  of the  Advisor  and  Chairman  and CEO of the  Sub-Advisor,  Ralph  L.
Schlosstein-Director and President of the Advisor and the Sub-Advisor, Robert S.
Kapito-Director  and Vice  Chairman  of the  Advisor  and Vice  Chairman  of the
Sub-Advisor, Kevin M. Klingert-Director and Managing Director of the Advisor and
Managing  Director of the  Sub-Advisor,  Henry  Gabbay-Managing  Director of the
Advisor and the Sub-Advisor,  Anne Ackerley-Managing Director of the Advisor and
the  Sub-Advisor,  Richard  M. Shea and  James  Kong-Managing  Directors  of the
Sub-Advisor.


                                       16
<PAGE>

--------------------------------------------------------------------------------
                        BLACKROCK MUNICIPAL INCOME TRUST
                               INVESTMENT SUMMARY
--------------------------------------------------------------------------------

THE TRUST'S INVESTMENT OBJECTIVES

The  BlackRock  Municipal  Income  Trust's  investment  objective  is to provide
current income exempt from regular Federal income tax.

WHO MANAGES THE TRUST?

BlackRock  Advisors,  Inc. (the "Advisor")  manages the Trust.  The Advisor is a
wholly-owned subsidiary of BlackRock,  Inc.  ("BlackRock"),  which is one of the
largest  publicly traded  investment  management firms in the United States with
$238 billion of assets under management as of March 31, 2002.  BlackRock manages
assets on behalf of institutional and individual  investors  worldwide through a
variety of equity, fixed income,  liquidity and alternative investment products,
including the BLACKROCK FUNDS and BLACKROCK  PROVIDENT  INSTITUTIONAL  FUNDS. In
addition,  BlackRock  provides  risk  management  advice and  investment  system
services to a growing  number of  institutional  investors  under the  BLACKROCK
SOLUTIONS name.  Clients are served from the Company's  headquarters in New York
City, as well as offices in Boston, Edinburgh,  Hong Kong, San Francisco,  Tokyo
and Wilmington. BlackRock is a member of The PNC Financial Services Group (NYSE:
PNC), and is majority-owned by PNC and by BlackRock employees.

WHAT CAN THE TRUST INVEST IN?

Under normal  conditions,  the Trust expects to continue to manage its assets so
that at least 80% of its investments are rated at least  investment grade ("BBB"
by Standard & Poor's or "Baa" by Moody's Investor Services) and up to 20% of its
assets are rated  below  investment  grade  (Ba/BB or B) or that are unrated but
deemed to be of comparable quality by the Advisor.

WHAT IS THE ADVISOR'S INVESTMENT STRATEGY?

The Advisor will manage the assets of the Trust in  accordance  with the Trust's
investment  objective and policies to seek to achieve its objective by investing
substantially  all of its assets in municipal  bonds that pay  interest  that is
exempt from regular  Federal income tax. As such, the Advisor  actively  manages
the assets in relation to market conditions and interest rate changes. Depending
on yield and  portfolio  allocation  considerations,  the  Advisor may choose to
invest a portion of the Trust's assets in securities  which pay interest that is
subject to AMT (alternative  minimum tax). The Trust intends to invest primarily
in  long-term  bonds and expects  bonds in its  portfolio to maintain an average
portfolio  maturity  of 15  years  or  more,  but the  average  maturity  may be
shortened or lengthened from time to time depending on market conditions.

Under current market conditions the use of leverage  increases the income earned
by the Trust.  The Trust  employs  leverage  primarily  through the  issuance of
preferred  shares.  Preferred  shareholders  will  receive  dividends  based  on
short-term rates in exchange for allowing the Trust to borrow additional assets.
These assets will be invested in longer-term assets which typically offer higher
interest  rates and the  difference  between the cost of the  dividends  paid to
preferred  shareholders  and the interest earned on the  longer-term  securities
will provide higher income levels for common  shareholders in most interest rate
environments.  The Trust issued preferred shares to leverage the portfolio.  See
"Leverage Considerations in the Trust".


                                       17
<PAGE>

HOW ARE THE TRUST'S SHARES PURCHASED AND SOLD? DOES THE TRUST PAY DIVIDENDS
REGULARLY?

The  Trust's  common  shares  are traded on the New York  Stock  Exchange  which
provides investors with liquidity on a daily basis. Orders to buy or sell shares
of the Trust must be placed  through a registered  broker or financial  advisor.
The Trust pays monthly  dividends which are typically paid on the first business
day of the month. For shares held in the  shareholder's  name,  dividends may be
reinvested in additional  shares of the fund through the Trust's transfer agent,
EquiServe Trust Company,  N.A.  Investors who wish to hold shares in a brokerage
account  should check with their  financial  advisor to determine  whether their
brokerage firm offers dividend reinvestment services.

LEVERAGE CONSIDERATIONS IN THE TRUST

The Trust employs leverage  primarily  through the issuance of preferred shares.
Leverage permits the Trust to borrow money at short-term rates and reinvest that
money in longer-term  assets,  which typically offer higher interest rates.  The
difference  between the cost of the borrowed  funds and the income earned on the
proceeds  that are  invested in  longer-term  assets is the benefit to the Trust
from leverage.

Leverage  increases  the duration (or price  sensitivity  of the net assets with
respect to changes  in  interest  rates) of the  Trust,  which can  improve  the
performance  of the Trust in a  declining  rate  environment,  but can cause net
assets to decline  faster in a rapidly  rising  interest rate  environment.  The
Trust may reduce, or unwind,  the amount of leverage employed should the Advisor
consider that reduction to be in the best interests of the Trust.  The Advisor's
portfolio managers  continuously monitor and regularly review the Trust's use of
leverage  and  maintain  the  ability to unwind the  leverage  if that course is
chosen.

SPECIAL CONSIDERATIONS AND RISK FACTORS RELEVANT TO THE TRUST

THE TRUST IS  INTENDED  TO BE A  LONG-TERM  INVESTMENT  AND IS NOT A  SHORT-TERM
TRADING VEHICLE.

INVESTMENT OBJECTIVES. Although the objective of the Trust is to provide current
income exempt from regular  Federal  income tax,  there can be no assurance that
this objective will be achieved.

DIVIDEND  CONSIDERATIONS.  The income and dividends paid by the Trust are likely
to vary over time as fixed income market conditions change. Future dividends may
be higher or lower than the dividend the Trust is currently paying.

LEVERAGE.  The Trust utilizes leverage through the issuance of preferred shares,
which involves  special risks.  The Trust's net asset value and market value may
be more volatile due to its use of leverage.

MARKET PRICE OF SHARES.  The shares of closed-end  investment  companies such as
the Trust trade on the New York Stock  Exchange  (NYSE symbol:  BFK) and as such
are subject to supply and demand influences.  As a result, shares may trade at a
discount or a premium to their net asset value.

MUNICIPAL  OBLIGATIONS.  The value of municipal debt securities generally varies
inversely with changes in prevailing  market  interest  rates.  Depending on the
amount of call  protection  that the securities in the Trust have, the Trust may
be subject to certain  reinvestment  risks in environments of declining interest
rates.

HIGH  YIELD  RISK.  The Trust may  invest in high yield  bonds,  which  involves
additional risks,  including credit risk. The value of high yield, lower quality
bonds is affected by the  creditworthiness  of the issuers of the securities and
by general  economic and  specific  industry  conditions.  Issuers of high yield
bonds are not as strong  financially  as those with higher credit  ratings.  The
Trust's  investment in lower grade  securities  will expose the Trust to greater
risk than if the Trust owned only higher grade securities.

ILLIQUID  SECURITIES.  The Trust may  invest in  securities  that are  illiquid,
although  under current  market  conditions the Trust expects to do so to only a
limited extent. These securities involve special risks.

ANTITAKEOVER  PROVISIONS.  Certain antitakeover provisions will make a change in
the Trust's  business or management  more difficult  without the approval of the
Trustees and may have the effect of depriving  shareholders of an opportunity to
sell their shares at a premium above the prevailing market price.

ALTERNATIVE  MINIMUM TAX (AMT).  The Trust may invest in  securities  subject to
alternative minimum tax.


                                       18
<PAGE>

--------------------------------------------------------------------------------
                        BLACKROCK MUNICIPAL INCOME TRUST
                                    GLOSSARY
--------------------------------------------------------------------------------

CLOSED-END FUND:             Investment  vehicle which initially  offers a fixed
                             number of shares  and  trades on a stock  exchange.
                             The Trust  invests in a portfolio of  securities in
                             accordance  with its stated  investment  objectives
                             and policies.

DISCOUNT:                    When a Trust's net asset value is greater  than its
                             market  price the Trust is said to be  trading at a
                             discount.

DIVIDEND:                    Income  generated by  securities in a portfolio and
                             distributed to shareholders  after the deduction of
                             expenses. This Trust declares and pays dividends to
                             common shareholders on a monthly basis.

DIVIDEND REINVESTMENT:       Shareholders    may   have   all    dividends   and
                             distributions   of  capital   gains   automatically
                             reinvested into additional shares of a Trust.

MARKET PRICE:                Price  per  share  of a  security  trading  in  the
                             secondary  market.  For a closed-end Trust, this is
                             the price at which one share of the Trust trades on
                             the  stock  exchange.  If you  were  to buy or sell
                             shares, you would pay or receive the market price.

NET ASSET  VALUE  (NAV):     Net asset  value is the total  market  value of all
                             securities  and  other  assets  held by the  Trust,
                             including income accrued on its investments,  minus
                             any liabilities including accrued expenses, divided
                             by the total number of  outstanding  common shares.
                             It is the underlying value of a single common share
                             on a given  day.  Net asset  value for the Trust is
                             calculated  weekly and  published  in  BARRON'S  on
                             Saturday and THE WALL STREET JOURNAL on Monday.

PREMIUM:                     When a Trust's market price is greater than its net
                             asset  value,  the Trust is said to be trading at a
                             premium.

PREREFUNDED BONDS:           These   securities  are   collateralized   by  U.S.
                             Government  securities which are held in escrow and
                             are used to pay  principal  and interest on the tax
                             exempt  issue  and  retire  the bond in full at the
                             date indicated, typically at a premium to par.


                                       19
<PAGE>

[LOGO]

DIRECTORS
Laurence D. Fink, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Clayburn La Force, Jr.
Walter F. Mondale
Ralph L. Schlosstein

OFFICERS
Ralph L. Schlosstein, PRESIDENT
Robert S. Kapito, VICE PRESIDENT
Kevin M. Klingert, VICE PRESIDENT
Richard M. Shea, VICE PRESIDENT/TAX
Henry Gabbay, TREASURER
James Kong, ASSISTANT TREASURER
Anne Ackerley, SECRETARY

INVESTMENT ADVISOR
BlackRock Advisors, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM

SUB ADVISOR
BlackRock Financial Management, Inc.
40 East 52nd Street
New York, NY 10022

CUSTODIAN
State Street Bank and Trust Company
1 Heritage Drive
North Quincy, MA 02171

TRANSFER AGENT
EquiServe Trust Company, N.A.
150 Royall Street
Canton, MA 02021
(800) 699-1BFM

AUCTION AGENT
Bank of New York
5 Penn Plaza, 13th Floor
New York, NY 10001

INDEPENDENT AUDITORS
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116

LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
4 Times Square
New York, NY 10036

LEGAL COUNSEL -- INDEPENDENT TRUSTEES
Debevoise & Plimpton
919 Third Avenue
New York, NY 10022

     The accompanying financial statements as of April 30, 2002 were not audited
and accordingly, no opinion is expressed on them.

     This  report  is for  shareholder  information.  This  is not a  prospectus
intended for use in the purchase or sale of Trust shares.

     Statements and other information  contained in this report are as dated and
are subject to change.

                        BLACKROCK MUNICIPAL INCOME TRUST
                          c/o BlackRock Advisors, Inc.
                              100 Bellevue Parkway
                              Wilmington, DE 19809
                                 (800) 227-7BFM

                                                                     09248F-10-9
                                                                     09248F-20-8
                                                                     09248F-30-7
                                                                     09248F-40-6
                                                                     09248F-50-5
[LOGO] Printed on recycled paper                                     09248F-60-4

[LOGO]
MUNICIPAL
INCOME TRUST

--------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
APRIL 30, 2002


[LOGO](SM)
BLACKROCK

</TEXT>
</DOCUMENT>
