<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<FILENAME>c21640_n30d-.txt
<DESCRIPTION>ANNUAL REPORT
<TEXT>


--------------------------------------------------------------------------------
                    BLACKROCK NEW YORK MUNICIPAL INCOME TRUST
                          ANNUAL REPORT TO SHAREHOLDERS
                          REPORT OF INVESTMENT ADVISOR
--------------------------------------------------------------------------------

                                                               November 30, 2001

Dear Shareholder:

     Economic  activity  slowed  significantly  during the annual  period  ended
October  31,  2001,  continuing  the  downturn  that  began in March  2000.  The
September 11 attacks on the World Trade Center and the Pentagon accelerated this
decline.  Inflation  adjusted Gross Domestic Product (GDP) fell at a 0.4% annual
rate during the third quarter, reaffirming that the economy is officially headed
towards  recession,  which is defined as two  consecutive  quarters  of negative
growth as measured by GDP.  In  response  to the  dramatic  slowdown in the U.S.
economy,  The Federal Reserve Board aggressively lowered interest rates over the
period.  In stark  contrast to its three  interest  rate  increases in February,
March,  and May of 2000,  the  Federal  Open  Market  Committee  (FOMC)  has cut
interest rates ten times in 2001.  Year-to-date,  the FOMC has reduced  interest
rates by 4.50%,  bringing the current  Federal  Funds rate to 2.00%,  its lowest
level since September 1961.

     The  weakening  U.S.  economic  environment  and the  accompanying  Federal
Reserve  activity  have had a  positive  effect  on the  fixed  income  markets.
Virtually  all sectors of the fixed income  market,  with the  exception of high
yield,  posted  double-digit  returns over the annual  period ended  October 31,
2001. As short-term interest rates declined faster than long-term interest rates
over the period, the yield curve reached historically steep levels,  making it a
very  attractive  time for leveraged  bond funds.  Because these funds borrow at
short-term rates and invest in long-term securities,  the amount they earn grows
as the difference between short-term and long-term rates increases. Furthermore,
inflation is anticipated to decline to multi-decade  lows,  which should support
high-quality fixed income securities, especially those with longer maturities.

     The rallies in the fixed  income  markets  have  barely  offset the adverse
impact of the deteriorating equity market. For the year ending October 31, 2001,
the S&P 500 and Nasdaq  fell  25.49% and  49.39%,  respectively,  and,  while we
believe that  aggressive  monetary and fiscal  stimulus will help  stabilize the
economy, we expect growth to remain below potential for a more prolonged period.
Consumption  is  unlikely  to pick up  significantly  in the face of sizable job
cuts, the likelihood that flexible compensation (bonus, profit sharing, options)
will be sharply  lower,  and that  state and local  government  spending  may be
significantly  curtailed next year. In this  environment,  we expect a period of
prolonged lower interest rates.  Although somewhat discouraging for the American
consumer,  this low inflation/low  interest rate environment  should continue to
benefit fixed income  securities.  We expect  spread  products like high quality
corporates and mortgages to perform well relative to U.S. Treasuries.

     This  annual  report  contains  a summary of market  conditions  during the
annual  period and a review of portfolio  strategy by your  Trust's  managers in
addition  to the  Trust's  audited  financial  statements  and a listing  of the
portfolio's  holdings at October 31, 2001.  Continued thanks for your confidence
in BlackRock.  We appreciate the  opportunity to help you achieve your long-term
investment goals.

Sincerely,




/s/ Laurence D. Fink                       /s/ Ralph L. Schlosstein

Laurence D. Fink                           Ralph L. Schlosstein
Chairman                                   President

                                       1
<PAGE>


                                                               November 30, 2001

Dear Shareholder:

     We are pleased to present the first audited annual report for the BlackRock
New York Municipal Income Trust.  (the "Trust") for the period ended October 31,
2001. We would like to take this  opportunity  to review the Trust's stock price
and net asset value (NAV) performance, summarize market developments and discuss
recent portfolio management activity.

     The Trust is a non-diversified, actively managed closed-end bond fund whose
shares are traded on the New York Stock  Exchange  under the symbol  "BNY".  The
Trust's  investment  objective is to provide  current income exempt from regular
Federal  income tax and New York State and New York City personal  income taxes.
The Trust seeks to achieve this  objective  by investing in New York  tax-exempt
general   obligation  and  revenue  bonds  issued  by  city,  county  and  state
municipalities.  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 NAV
since inception:

                                    --------------------------------------------
                                        10/31/01         HIGH           LOW
--------------------------------------------------------------------------------
  STOCK PRICE                             $14.62        $15.37        $14.17
--------------------------------------------------------------------------------
  NET ASSET VALUE (NAV)                   $14.09        $14.43        $13.91
--------------------------------------------------------------------------------

THE FIXED INCOME MARKETS

     Investors'  hopes for a soft landing quickly turned to fears of a recession
as the U.S. economy rapidly  deteriorated  over the year. Prior to the events of
September 11, our economic  outlook  envisioned  an extended  period of sluggish
growth, with the risk of a more severe  deterioration if consumer confidence and
spending declined by any considerable degree. Economic data prior to the attacks
suggests  that the  scenario of a more severe  contraction  may have been in the
works.  Year-over-year  industrial  production  was down,  4.8% in  August,  the
largest yearly decline since 1982. The unemployment  rate had drifted up to 4.9%
from a low of 3.9% in October of last year, and the four-week average of initial
jobless claims rose to its highest level in nearly a decade. Consumer confidence
was starting to wane, and consumer credit outstanding had begun to decline.  The
events of September 11 undoubtedly  further  weakened  consumer  sentiment.  The
Conference  Board's  consumer  confidence  index  posted its  biggest  one-month
decline  since 1990.  According  to the minutes of the October 2, 2001,  Federal
Open  Market  Committee  meeting,  "The  terrorist  attacks  have  significantly
heightened  uncertainty  in an  economy  that was  already  weak.  Business  and
household spending as a consequence are being further damped.  Nonetheless,  the
long-term prospects for productivity growth and the economy remain favorable and
should become evident once the unusual forces  restraining demand abate." During
the fiscal year ended October 31, 2001, the Federal  Reserve Board  aggressively
lowered  the  Federal  Funds  rate by a total of 4.00% to bring it to 2.50%.  On
November 6, 2001, the Federal Reserve Board announced another interest rate cut,
bringing the current Federal Funds rate to 2.00%.

     Over the  course of the  year,  the U.S.  Treasury  yield  curve  steepened
significantly as the bond market rallied in response to the slowing U.S. economy
and the  aggressive  interest rate cuts by the Federal  Reserve.  U.S.  Treasury
yields on the  short-end  of the yield curve fell  sharply from a 5.91% yield on
2-year U.S.  Treasuries  as of October 31, 2000, to a 2.42% yield on October 31,
2001, in reaction to the Federal Reserve Board cutting  short-term  rates by 4%.
During the period,  the yield on the 10-year  U.S.  Treasury  fell from 5.75% on
October 31, 2000, to 4.23% on October 31, 2001. U.S. Treasury yields continue to
fall due to further  Federal  Reserve  easing and an  anticipation  of increased
supply in order to raise capital to support programs  implemented as a result of
the tragic events that occurred on September 11, 2001. On October 31, 2001,  the
U.S.  Treasury   announced  plans  to  stop  selling  30-year  U.S.   Treasuries
maintaining  that the  government  "does not need the 30-year bond to meet [its]
current financing needs." On the news that the U.S. Treasury would discontinue a
program that issued a total of $600 billion in debt since its official inception
in 1977,  the 30-year  bond price  increased  by more than 5% and yields,  which
react inversely to changes in price, fell over 36 basis points. As a result, the
on-the-run  curve,  which  measures  yields  on newly  issued  U.S.  Treasuries,
flattened 32 basis points.

     For the annual period ended October 31, 2001,  municipal bonds outperformed
the taxable domestic bond market on a tax-adjusted  basis,  returning 17.12% (as
measured by the LEHMAN  MUNICIPAL  INDEX at a tax  bracket of 38.6%)  versus the
LEHMAN  AGGREGATE  INDEX'S  14.56%.  Cash  inflows  over  the  period  increased
significantly  from the previous  year due to turmoil in the equity  markets and
diversification into fixed income securities. While municipals performed in line
with spread products (i.e. corporates, mortgages, etc.) and

                                       2
<PAGE>


U.S.  Treasuries  throughout the first half of the period,  the municipal  yield
curve  steepened  over the  latter  half of the  year,  and  showed  significant
outperformance  versus U.S.  Treasuries.  Refinancing  opportunities,  which are
expected to reach historic  levels due to falling  interest  rates,  continue to
drive the pace of new issues in the municipal market.

     The onset of the  recession  combined  with the  September  11 tragedy  has
impacted the U.S.  economy and especially New York.  Economic growth in New York
ceased after September 11 and now FY 2001's $1.6 billion  surplus  combined with
additional  future  revenues  derived from the rescue funds to aid New York City
will be used to meet  the  State's  budgeted  needs.  New  York  State  finances
continue to benefit from its broad and diverse economic base and its substantial
wealth and  resources.  These  combined  with  greater  fiscal  discipline  have
resulted in positive  operations  over the past six years.  Short term, New York
State should not see its revenues  significantly impacted or its ratings (A2/AA)
downgraded due to the September 11 tragedy.  In 2002 and 2003 the State's fiscal
flexibility  will  diminish,  unless  the  economy  rebounds  and  tax  receipts
increase, and management will be challenged to maintain an operating surplus.

     New York State is  directly  linked to the fiscal  health of New York City.
The demise of the World  Trade  Center and the  devastation  to lower  Manhattan
impacts the City's  business  structure.  However Federal and State aid combined
with the City's strong  financial  position,  prior to the crisis,  will provide
stability  to a very  difficult  situation.  We do not expect the City's  credit
quality or its ratings  (A2/A),  including  those of other New York City issuers
such as the NYC Transitional Finance Authority (AA2/AA+), the Triboro Bridge and
Tunnel  Authority  (Aa3/A+),  the MTA  (Baa1/BBB+)  and the NYC Water  Authority
(Aa2/AA) to be downgraded  near term. The decline in tourism and air travel will
negatively  impact the Port  Authority of NY and NJ (A1/AA-)  whose ratings will
fall into the mid A  category.  Long term,  it is far too early to  predict  the
influence of September 11 on New York City's economy.


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 via auction rate preferred shares
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 monthly income.  At the period ended October 31, 2001, the Trust's  leverage
amount was approximately 38% of total assets.

     Municipals outperformed most spread products on a tax-adjusted basis during
the period, except on the short-end of the yield curve. The curve steepened over
most of the period and the 5 to 15 year part of the curve  remains very steep on
a historical  basis.  We remain  overweight in premium  coupon  securities in an
effort to avoid potential market discount  problems.  Premium coupon  securities
offer better price  performance  during periods of falling  interest rates,  and
similar  performance to discounts  when interest  rates rise.  Retail demand has
been robust throughout the period, with record inflows into municipal bond funds
of $2.92 billion during the month of August 2001, the largest  monthly  increase
since  1994.  Year-to-date,  net  inflows  into  municipal  bond  funds is $7.98
billion.

                                       3
<PAGE>


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

--------------------------------------------------------------------------------
                                SECTOR BREAKDOWN
--------------------------------------------------------------------------------
  SECTOR                                              OCTOBER 31, 2001
--------------------------------------------------------------------------------
  School                                                     24%
--------------------------------------------------------------------------------
  Water & Sewer                                              17%
--------------------------------------------------------------------------------
  Transportation                                             12%
--------------------------------------------------------------------------------
  Lease Revenue                                              7%
--------------------------------------------------------------------------------
  Other                                                      7%
--------------------------------------------------------------------------------
  Hospital                                                   6%
--------------------------------------------------------------------------------
  Housing                                                    6%
--------------------------------------------------------------------------------
  Special Tax                                                6%
--------------------------------------------------------------------------------
  District                                                   5%
--------------------------------------------------------------------------------
  City, County & State                                       4%
--------------------------------------------------------------------------------
  Sales Tax                                                  3%
--------------------------------------------------------------------------------
  Industrial & Pollution Control                             2%
--------------------------------------------------------------------------------
  Power                                                      1%
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
   CREDIT RATING*                             OCTOBER 31, 2001
--------------------------------------------------------------------------------
   AAA/Aaa                                          38%
--------------------------------------------------------------------------------
   AA/Aa                                            32%
--------------------------------------------------------------------------------
   A/A                                              18%
--------------------------------------------------------------------------------
   BBB/Baa                                           5%
--------------------------------------------------------------------------------
   Not Rated                                         7%
--------------------------------------------------------------------------------

----------
* 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 New
York Investment Quality Municipal 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

                                       4
<PAGE>


--------------------------------------------------------------------------------
                    BLACKROCK NEW YORK MUNICIPAL INCOME TRUST
--------------------------------------------------------------------------------
  Symbol on New York Stock Exchange:                                BNY
--------------------------------------------------------------------------------
  Initial Offering Date:                                       July 27, 2001
--------------------------------------------------------------------------------
  Closing Stock Price as of 10/31/01:                            $14.62
--------------------------------------------------------------------------------
  Net Asset Value as of 10/31/01:                                $14.09
--------------------------------------------------------------------------------
  Yield on Closing Stock Price as of 10/31/01 ($14.62)(1):         6.00%
--------------------------------------------------------------------------------
  Current Monthly Distribution per Share(2):                      $0.073125
--------------------------------------------------------------------------------
  Current Annualized Distribution per Share(2):                   $0.8775
--------------------------------------------------------------------------------
(1)  Yield on  Closing  Stock  Price  is  calculated  by  dividing  the  current
     annualized distribution per share by the closing stock price per share.
(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.

                                       5
<PAGE>


<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
BLACKROCK NEW YORK MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS OCTOBER 31, 2001
-----------------------------------------------------------------------------------------------------------------------------------
           PRINCIPAL                                                                                    OPTION CALL
  RATING*   AMOUNT                                                                                      PROVISIONS+        VALUE
(UNAUDITED)  (000)                              DESCRIPTION                                             (UNAUDITED)      (NOTE 1)
-----------------------------------------------------------------------------------------------------------------------------------
<S>      <C>         <C>                                                                              <C>             <C>
                     LONG-TERM INVESTMENTS--159.7%
                     NEW YORK--151.7%
                     Charter Mac Equity Issuer Trust,
     NR  $ 6,000++     Ser. A, 6.30%, 6/30/49 .....................................................    No Opt. Call   $  6,000,000
     NR    5,500++     Ser. B, 6.80%, 11/30/50 ....................................................    No Opt. Call      5,500,000
     AA    8,000     Dutchess Cnty. New York Ind. Dev. Agcy. Civic Fac. Rev., Vassar Coll. Proj.,
                       5.35%, 9/01/40 .............................................................     8/11 @ 101       8,140,800
    AAA    1,355     East Rochester Hsg. Auth., Gates Sr. Hsg. Inc. Proj., 6.13%, 4/20/43, GNMA ...    10/11 @ 105       1,462,831
     A-    2,590     Long Island Pwr. Auth. Elec. Sys. Rev., Ser. A, 5.50%, 12/01/29 ..............     6/03 @ 101       2,623,023
                     Munimae TE Bond Subsidiary, LLC,
     NR    6,000++     Ser. A, 6.30%, 6/30/49 .....................................................    No Opt. Call      6,000,000
     NR    3,000++     Ser. B, 6.80%, 6/30/50 .....................................................    No Opt. Call      3,000,000
      A   11,450     New York, G.O., Ser. H., 5.00%, 3/15/29 ......................................     3/09 @ 101      11,054,059
                     New York City Ind. Dev. Agcy.,
      A      750       Marymount Sch. Proj., 5.125%, 9/01/21, ACA .................................     9/11 @ 100         735,727
      A    2,000       Marymount Sch. Proj., 5.25%, 9/01/31, ACA ..................................     9/11 @ 100       1,982,440
    AAA    1,550       Royal Charter Presbyterian, 5.25%, 12/15/32, FSA ...........................    12/11 @ 102       1,568,786
    BBB-  14,850       Spec. Arpt. Airis JFK I LLC Proj., Ser. A, 5.50%, 7/01/28 ..................     7/11 @ 100      13,774,266
     A-    6,000       Term. One Group Assoc. Proj., 6.00%, 1/01/19 ...............................     1/04 @ 102       6,097,620
                     New York City Mun. Wtr. Fin. Auth. Rev.,
    AAA    5,000       Ser. A, 5.00%, 6/15/32, FGIC ...............................................     6/11 @ 100       4,947,050
     AA    7,000       Ser. C, 5.00%, 6/15/32 .....................................................     6/11 @ 100       6,851,110
     AA   20,865       Ser. E, 5.00%, 6/15/26 .....................................................     6/11 @ 100      20,576,020
                     New York City Trans. Fin. Auth. Rev., Ser. C,
    AA+   16,470       4.75%, 5/01/23 .............................................................     5/08 @ 102      15,558,056
    AA+    9,600       5.00%, 5/01/29 .............................................................     5/09 @ 101       9,336,096
                     New York St. Dorm. Auth. Rev.,
     A3   13,780       Lenox Hill Hosp. Oblig. Group, 5.50%, 7/01/30 ..............................     7/11 @ 101      13,832,777
    AAA    2,425       New Sch. Univ., 5.00%, 7/01/31, MBIA .......................................     7/11 @ 100       2,399,586
    AAA    9,000       New Sch. Univ., 5.00%, 7/01/41, MBIA .......................................     7/11 @ 100       8,865,810
    AAA   12,000       New York Univ., Ser. 2, 5.00%, 7/01/41, AMBAC ..............................     7/11 @ 100      11,821,080
    AAA   13,000       St. Univ. Edl. Facs., Ser. A, 4.75%, 5/15/25, MBIA .........................     5/08 @ 100      12,432,940
    AAA   17,900       St. Univ. Edl. Facs., Ser. B, 4.75%, 5/15/28, MBIA .........................     5/08 @ 101      17,021,826
    AAA    2,000       Winthrop Univ. Hosp. Assoc., Ser. A, 5.25%, 7/01/31, AMBAC .................     7/11 @ 101       2,025,080
                     New York St. Environ. Facs. Corp., Mun. Wtr. Fin. Rev.,
    AAA    4,500       5.00%, 6/15/26 .............................................................     6/11 @ 100       4,500,945
    AAA    9,710       5.00%, 6/15/31 .............................................................     6/11 @ 100       9,697,377
    Aaa   15,500     New York St. Mtge. Agcy. Rev., Ser. A, 5.30%, 10/01/31 .......................     4/11 @ 100      15,636,245
    AA-    6,290     New York St. Urban Dev. Corp. Rev., Correctional Cap. Facs., Ser. 6,
                       5.375%, 1/01/25 ............................................................     1/06 @ 102       6,329,124
                     Port Auth. New York & New Jersey Rev.,
    AA-   20,000       Ser. 124, 5.00%, 8/01/36 ...................................................     8/08 @ 101      18,904,000
    AAA   14,000       Spec. Oblig. JFK Intl. Air Term. 6, 5.75%, 12/01/22, MBIA ..................    12/07 @ 102      14,512,260
     AA    2,500     Westchester Cnty. Ind. Dev. Agcy. Rev., Winward Sch. Civic Fac.,
                       5.25%, 10/01/31 ............................................................    10/11 @ 100       2,496,750
                                                                                                                      ------------
                                                                                                                       265,683,684
                                                                                                                      ------------
                     Puerto Rico--8.0%
      A   14,000     Puerto Rico Comnwlth. Pub. Impvt., G.O., Ser. A, 5.125%, 7/01/31 .............     7/11 @ 100      14,029,120
                                                                                                                      ------------
</TABLE>

                       See Notes to Financial Statements.

                                       6
<PAGE>


<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                         VALUE
                                                DESCRIPTION                                                            (NOTE 1)
-----------------------------------------------------------------------------------------------------------------------------------
<S>                  <C>                                                                                             <C>
                     TOTAL INVESTMENTS--159.7% (COST $280,666,143) ................................                  $ 279,712,804
                     Other assets in excess of liabilities--3.0% ..................................                      5,147,562
                     Liquidation value of preferred stock--(62.7%) ................................                   (109,750,000)
                                                                                                                      ------------
                     NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ...........................                  $ 175,110,366
                                                                                                                      ============
</TABLE>

----------
*    Using the higher of Standard & Poor's, Moody's or Fitch's rating.
+    Option call provisions: date (month/year) and price of the earliest 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.

--------------------------------------------------------------------------------
                              KEY TO ABBREVIATIONS:

             ACA   -- American Capital Access
             AMBAC -- American Municipal Bond Assurance Corporation
             FGIC  -- Financial Guaranty Insurance Company
             FSA   -- Financial Security Assurance
             GNMA  -- Government National Mortgage Association
             G.O.  -- General Obligation
             MBIA  -- Municipal Bond Insurance Association
--------------------------------------------------------------------------------

                       See Notes to Financial Statements.

                                       7
<PAGE>

--------------------------------------------------------------------------------
BLACKROCK NEW YORK
MUNICIPAL INCOME TRUST
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2001
--------------------------------------------------------------------------------

ASSETS
Investments, at value (cost $280,666,143)
  (Note 1) ....................................................  $  279,712,804
Cash ..........................................................         211,054
Receivable for investments sold ...............................       2,586,571
Interest receivable ...........................................       3,592,860
Other assets ..................................................          13,255
                                                                 --------------
                                                                    286,116,544
                                                                 --------------
LIABILITIES
Dividends payable--common stock ...............................         908,489
Dividends payable--preferred stock ............................          22,546
Organization and offering costs payable .......................         149,201
Investment advisory fee payable (Note 2) ......................          79,262
Other accrued expenses ........................................          96,680
                                                                 --------------
                                                                      1,256,178
                                                                 --------------
NET INVESTMENT ASSETS .........................................  $  284,860,366
                                                                 ==============
Net investment assets were comprised of:
  Common shares of beneficial interest:
    Par value (Note 4) ........................................  $       12,429
    Paid in capital in excess of par ..........................     176,386,725
  Preferred stock (Note 4) ....................................     109,750,000
                                                                 --------------
                                                                    286,149,154
  Distributions in excess of net investment income
    (Note 1) ..................................................        (266,535)
  Accumulated net realized loss (Note 1) ......................         (68,914)
  Net unrealized depreciation (Note 1) ........................        (953,339)
                                                                 --------------
  Net investment assets, October 31, 2001 .....................  $  284,860,366
                                                                 ==============
  Net assets applicable to common
    shareholders ..............................................  $  175,110,366
                                                                 ==============
Net asset value per common share of
  beneficial interest:
  ($175,110,366 / 12,429,162 common shares of
  beneficial interest issued and outstanding) .................          $14.09
                                                                         ======
--------------------------------------------------------------------------------
BLACKROCK NEW YORK
MUNICIPAL INCOME TRUST
STATEMENT OF OPERATIONS
FOR THE PERIOD JULY 27, 2001
(COMMENCEMENT OF INVESTMENT OPERATIONS)
TO OCTOBER 31, 2001
--------------------------------------------------------------------------------

NET INVESTMENT INCOME
Income
  Interest (Note 1) ...............................................  $2,023,758
                                                                     ----------
Expenses
  Investment advisory .............................................     305,092
  Independent accountants .........................................      26,200
  Reports to shareholders .........................................      23,500
  Auction agent ...................................................      21,358
  Custodian .......................................................      17,959
  Organization expenses ...........................................      15,000
  Trustees ........................................................       9,902
  Transfer agent ..................................................       6,875
  Legal ...........................................................       4,058
  Miscellaneous ...................................................      16,956
                                                                     ----------
  Total expenses ..................................................     446,900
  Less fees waived by advisor (Note 2) ............................    (127,122)
  Less fees paid indirectly (Note 2) ..............................      (8,764)
                                                                     ----------
  Net expenses ....................................................     311,014
                                                                     ----------
Net investment income .............................................   1,712,744
                                                                     ----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized loss on investments ..................................     (68,914)
Net change in unrealized depreciation on investments ..............    (953,339)
                                                                     ----------
Net loss on investments ...........................................  (1,022,253)
                                                                     ----------
NET INCREASE IN NET INVESTMENT
ASSETS RESULTING FROM OPERATIONS ..................................  $  690,491
                                                                     ==========
                       See Notes to Financial Statements.

                                       8
<PAGE>


--------------------------------------------------------------------------------
BLACKROCK NEW YORK MUNICIPAL INCOME TRUST
STATEMENT OF CHANGES IN NET INVESTMENT ASSETS
--------------------------------------------------------------------------------

                                                                 FOR THE PERIOD
                                                                 JULY 27, 2001*
                                                                    THROUGH
                                                                OCTOBER 31, 2001
                                                                ----------------

INCREASE (DECREASE) IN NET INVESTMENT ASSETS

OPERATIONS:
  Net investment income .......................................  $    1,712,744
  Net realized loss on investments ............................         (68,914)
  Net change in unrealized depreciation on investments ........        (953,339)
                                                                 --------------
    Net increase in net assets resulting from operations ......         690,491
                                                                 --------------
DIVIDENDS:
  To common shareholders from net investment income ...........      (1,572,298)
  To common shareholders in excess of net investment income ...        (244,679)
  To preferred shareholders from net investment income ........        (140,446)
  To preferred shareholders in excess of net investment income          (21,856)
                                                                 --------------
    Total dividends ...........................................      (1,979,279)
                                                                 --------------
CAPITAL SHARE TRANSACTIONS:
  Net proceeds from the issuance of common shares .............     153,176,800
  Common shares issued in connection with the reinvestment
    of common dividends .......................................          15,854
  Net proceeds from underwriters' over-allotment
    option exercised ..........................................      23,206,500
  Gross proceeds from the issuance of preferred shares ........     109,750,000
                                                                 --------------
    Net proceeds from capital share transactions ..............     286,149,154
                                                                 --------------
      Total increase ..........................................     284,860,366
                                                                 --------------
NET INVESTMENT ASSETS
Beginning of period ...........................................              --
                                                                 --------------
End of period (including distributions in excess of
  net investment income of $266,535) ..........................  $  284,860,366
                                                                 ==============

----------
*  Commencement of investment operations. (Note 1).

                       See Notes to Financial Statements.

                                       9
<PAGE>


--------------------------------------------------------------------------------
BLACKROCK NEW YORK MUNICIPAL INCOME TRUST
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------

                                                                 FOR THE PERIOD
                                                                JULY 27, 2001(1)
                                                                     THROUGH
                                                                OCTOBER 31, 2001
                                                                ----------------
PER COMMON SHARE OPERATING PERFORMANCE:(2)
Net asset value, beginning of period(3) .........................  $  14.33
                                                                   --------
  Net investment income .........................................      0.15
  Net realized and unrealized gain on investments ...............     (0.08)
                                                                   --------
Net decrease from investment operations .........................      0.07
                                                                   --------
Dividends and distributions:
  Dividends from net investment income to:
    Common shareholders .........................................     (0.14)
    Preferred shareholders ......................................     (0.01)
  Distributions in excess of net investment income to:
    Common shareholders .........................................     (0.02)
    Preferred shareholders ......................................     (0.00)(4)
                                                                   --------
  Total dividends and distributions .............................     (0.17)
                                                                   --------
Capital charges:
  Capital charge with respect to issuance of common shares ......     (0.03)
  Capital charge with respect to issuance of preferred shares ...     (0.11)
                                                                   --------
Total capital charges ...........................................     (0.14)
                                                                   --------
Net asset value, end of period(3) ...............................  $  14.09
                                                                   ========
MARKET VALUE, END OF PERIOD(3) ..................................  $  14.62
                                                                   ========
TOTAL INVESTMENT RETURN(5) ......................................     (5.58)%
                                                                   ========
RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(6)
Expenses after fee waiver .......................................      0.73%(7)
Expenses before fee waiver ......................................      1.03%(7)
Net investment income after fee waiver and before
  preferred stock dividends .....................................      3.93%(7)
Preferred stock dividends .......................................      0.37%(7)
Net investment income available to common shareholders ..........      3.56%(7)
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) .................  $163,077
Portfolio turnover ..............................................         2%
Net assets of common shareholders, end of period (000) ..........  $175,110
Preferred stock outstanding (000) ...............................  $109,750
Asset coverage per preferred share, end of period ...............  $ 64,894

----------
(1)  Commencement of investment  operations.  Net asset value  immediately after
     the closing of the first public offering was $14.30. (Note 1)
(2)  Calculated using the average shares method.
(3)  Net asset value and market value are  published in BARRON'S on Saturday and
     THE WALL STREET JOURNAL on Monday.
(4)  Amount is less than $0.005 per share.
(5)  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,  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.
(6)  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.
(7)  Annualized.

The information above represents the audited operating  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.

                                       10
<PAGE>

--------------------------------------------------------------------------------
BLACKROCK NEW YORK
MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

NOTE 1. ORGANIZATION & ACCOUNTING POLICIES

The BlackRock New York  Municipal  Income Trust (the "Trust") was organized as a
Delaware   business   trust  on  March  30,   2001  and  is   registered   as  a
non-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  objectives are to
provide  current  income exempt from regular  Federal and New York State and New
York City personal  income taxes and to invest in municipal bonds that over time
will perform better than the broader New York municipal bond market. The ability
of issuers of debt securities held by the Trust to meet their obligations may be
affected by economic  developments in the state, 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 in determining values. Short-term investments are 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 the 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,  respectively,
to interest income on securities purchased using the interest method.

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.

NOTE 2. AGREEMENTS

The Fund 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.  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 $127,122 during the period
ended October 31, 2001.
                                       11
<PAGE>


     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.

     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 period ended October
31, 2001 were approximately $8,764.

NOTE 3. PORTFOLIO SECURITIES

Purchases and sales of investment securities, other than short-term investments,
for the period ended October 31, 2001  aggregated  $285,618,531  and $4,893,980,
respectively.

     The Federal income tax basis of the Trust's investments at October 31, 2001
was  $280,666,808,  and  accordingly,  net unrealized  depreciation was $954,004
(gross      unrealized       appreciation--$931,707,       gross      unrealized
depreciation--$1,885,711).

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 uninsured common
shares of beneficial  interest into one or more series of preferred  shares.  Of
the 12,429,162 common shares of beneficial  interest  outstanding at October 31,
2001, the Advisor owned 8,112 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                                  10,808,028
     Shares issued in connection with
        the exercise of the underwriters'
        over-allotment option                                     1,620,000
     Shares issued in connection
        with the reinvestment of
        common dividends                                              1,134
                                                             --------------
     Net increase in shares outstanding                          12,429,162
                                                             ==============

     Offering costs of $357,600 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 4,390 common shares of beneficial
interest and issued two series of Auction Market  Preferred  Shares  ("preferred
shares")  Series  W7--2,195 and Series  F7--2,195.  The preferred  shares have a
liquidation  value of $25,000 per share plus any accumulated  unpaid  dividends.
Underwriting  discounts of $1,097,500 and offering costs of $193,101 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 W7 and  Series F7 are  cumulative  at a rate  which is
reset  every 7 days based on the results of an auction.  Dividend  rates  ranged
from 1.35% to 2.00% during the period ended October 31, 2001.

     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 directors.  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 October 31, 2001,  the Board of Trustees of the Trust  declared a
dividend of $0.073125 per common share payable December 3, 2001, to shareholders
of record on November 15, 2001.

     For the period  November  1, 2001  through  November  30,  2001,  dividends
declared on preferred  stock totaled  $162,803 in aggregate for the  outstanding
preferred shares.

                                       12
<PAGE>


--------------------------------------------------------------------------------
                    BLACKROCK NEW YORK MUNICIPAL INCOME TRUST
                         REPORT OF INDEPENDENT AUDITORS
--------------------------------------------------------------------------------

To the Shareholders and Board of Trustees of
BlackRock New York Municipal Income Trust

     We have audited the  accompanying  statement of assets and  liabilities  of
BlackRock New York Municipal Income Trust (the "Trust"), including the portfolio
of investments, as of October 31, 2001, and the related statement of operations,
statement of changes in net investment  assets and financial  highlights for the
period from July 27, 2001 (commencement of investment operations) to October 31,
2001. These financial statements and financial highlights are the responsibility
of the Trust's management.  Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit.

     We conducted our audit in  accordance  with  auditing  standards  generally
accepted in the United States of America.  Those standards  require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement.  An audit
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the financial statements. Our procedures included confirmation of
securities  owned as of October 31, 2001, by  correspondence  with the custodian
and brokers;  where replies were not received from brokers,  we performed  other
auditing procedures.  An audit also includes assessing the accounting principles
used and  significant  estimates made by  management,  as well as evaluating the
overall financial statement  presentation.  We believe that our audit provides a
reasonable basis for our opinion.

     In our opinion,  the financial statements and financial highlights referred
to above present fairly,  in all material  respects,  the financial  position of
BlackRock New York Municipal Income Trust as of October 31, 2001, the results of
its operations,  changes in its net investment  assets and financial  highlights
for the period from July 27, 2001  (commencement  of investment  operations)  to
October 31, 2001, in conformity with accounting principles generally accepted in
the United States of America.



/s/ Deloitte & Touche LLP

Boston, Massachusetts
December 7, 2001

                                       13
<PAGE>


--------------------------------------------------------------------------------
                    BLACKROCK NEW YORK 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 in United
States dollars 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 transfer
agent, as dividend disbursing 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  transfer  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 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  transfer  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 net asset value
per share on the date the shares are issued.  If, on the dividend  payment date,
the net asset value per share is greater  than the market  value per share (such
condition  being  referred to herein as "market  discount"),  the transfer 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 as applied to
any dividend or  distribution  paid  subsequent to written  notice of the change
sent to all  shareholders  of the Trust at least 90 days  before the record date
for the dividend or distribution.  The Plan also may be amended or terminated by
the Plan Agent upon at least 90 days written notice to all  shareholders  of the
Trust.  All  correspondence  concerning  the Plan should be directed to the Plan
Agent at (800) 699-1BFM. The address is on the front of this report.

--------------------------------------------------------------------------------
                             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.

                                       14
<PAGE>


--------------------------------------------------------------------------------
                    BLACKROCK NEW YORK MUNICIPAL INCOME TRUST
                               INVESTMENT SUMMARY
--------------------------------------------------------------------------------

THE TRUST'S INVESTMENT OBJECTIVES

The BlackRock New York  Municipal  Income Trust's  investment  objectives are to
provide  current  income exempt from regular  Federal and New York State and New
York City personal  income tax consistent  with the  preservation of capital and
invest in municipal  bonds that will perform  better than the New York municipal
bond market.

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
$226 billion of assets under  management  as of  September  30, 2001.  BlackRock
manages assets on behalf of more than 3,300 institutions and 200,000 individuals
worldwide through a variety of equity,  fixed income,  liquidity and alternative
investment separate accounts and mutual funds, including the BLACKROCK FUNDS and
BLACKROCK PROVIDENT  INSTITUTIONAL  Funds. In addition,  BlackRock provides risk
management and investment  system services to institutional  investors under the
BLACKROCK SOLUTIONS name. Clients are served from the Company's  headquarters in
New York City, as well as offices in Wilmington,  DE, San Francisco,  Edinburgh,
Scotland,  Tokyo,  Japan,  and  Hong  Kong.  BlackRock  is a  member  of The PNC
Financial  Services  Group,  Inc.  (NYSE:  PNC), one of the largest  diversified
financial services  organizations in the United States, 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.  The Trust intends to invest
primarily  all of the assets in a portfolio of New York  Municipal  Obligations,
which include debt  obligations  issued by the State of New York,  its political
subdivisions,  agencies and  instrumentalities  and by other qualifying  issuers
that pay interest  which,  in the opinion of the bond counsel of the issuer,  is
exempt from Federal and New York income taxes.

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
primarily  in  municipal  bonds that pay  interest  that is exempt from  regular
Federal  income tax and New York State and New York City personal  income taxes.
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".

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

                                       15
<PAGE>


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

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  objectives  of the Trust are to  provide
current  income that is exempt from  regular  Federal and New York State and New
York City personal  income taxes and to invest in municipal bonds that over time
will perform better than the broader New York  Municipal bond market,  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 stock,
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:  BNY) 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.

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.

                                       16
<PAGE>


--------------------------------------------------------------------------------
                    BLACKROCK NEW YORK 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
                         stock  price  the  fund  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  fund,  this is the price at
                         which  one  share  of the  fund  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,  plus
                         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  stock  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.

                                       17
<PAGE>


--------------------------------------------------------------------------------
                            BLACKROCK ADVISORS, INC.
                           SUMMARY OF CLOSED-END FUNDS
--------------------------------------------------------------------------------


TAXABLE TRUSTS
--------------------------------------------------------------------------------

                                                                STOCK  MATURITY
PERPETUAL TRUSTS                                                SYMBOL   DATE
                                                                ------ --------
The BlackRock Income Trust Inc.                                  BKT       N/A
The BlackRock North American Government Income Trust Inc.        BNA       N/A
The BlackRock High Yield Trust                                   BHY       N/A
BlackRock Core Bond Trust                                        BHK       N/A

TERM TRUSTS
The BlackRock Strategic Term Trust Inc.                          BGT      12/02
The BlackRock Investment Quality Term Trust Inc.                 BQT      12/04
The BlackRock Advantage Term Trust Inc.                          BAT      12/05
The BlackRock Broad Investment Grade 2009 Term Trust Inc.        BCT      12/09

TAX-EXEMPT TRUSTS
--------------------------------------------------------------------------------

                                                                STOCK  MATURITY
PERPETUAL TRUSTS                                                SYMBOL    DATE
                                                                ------  -------
The BlackRock Investment Quality Municipal Trust Inc.            BKN       N/A
The BlackRock California Investment Quality Municipal Trust Inc. RAA       N/A
The BlackRock Florida Investment Quality Municipal Trust         RFA       N/A
The BlackRock New Jersey Investment Quality Municipal Trust Inc. RNJ       N/A
The BlackRock New York Investment Quality Municipal Trust Inc.   RNY       N/A
The BlackRock Pennsylvania Strategic Municipal Trust             BPS       N/A
The BlackRock Strategic Municipal Trust                          BSD       N/A
BlackRock California Municipal Income Trust                      BFZ       N/A
BlackRock Municipal Income Trust                                 BFK       N/A
BlackRock New York Municipal Income Trust                        BNY       N/A
BlackRock New Jersey Municipal Income Trust                      BNJ       N/A
BlackRock Florida Municipal Income Trust                         BBF       N/A

TERM TRUSTS
The BlackRock Municipal Target Term Trust Inc.                   BMN      12/06
The BlackRock Insured Municipal 2008 Term Trust Inc.             BRM      12/08
The BlackRock California Insured Municipal 2008 Term Trust Inc.  BFC      12/08
The BlackRock Florida Insured Municipal 2008 Term Trust          BRF      12/08
The BlackRock New York Insured Municipal 2008 Term Trust Inc.    BLN      12/08
The BlackRock Insured Municipal Term Trust Inc.                  BMT      12/10
BlackRock California Municipal 2018 Term Trust                   BJZ      12/18
BlackRock New York Municipal 2018 Term Trust                     BLH      12/18
BlackRock Municipal 2018 Term Trust                              BPK      12/18

 IF YOU WOULD LIKE FURTHER INFORMATION PLEASE DO NOT HESITATE TO CALL BLACKROCK
        AT (800) 277-7BFM (7236) OR CONSULT WITH YOUR FINANCIAL ADVISOR.

                                       18
<PAGE>


--------------------------------------------------------------------------------
                            BLACKROCK ADVISORS, INC.
                                   AN OVERVIEW
--------------------------------------------------------------------------------

     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
$226 billion of assets under  management  as of  September  30, 2001.  BlackRock
manages assets on behalf of more than 3,300 institutions and 200,000 individuals
worldwide through a variety of equity,  fixed income,  liquidity and alternative
investment separate accounts and mutual funds, including the BLACKROCK FUNDS and
BLACKROCK PROVIDENT  INSTITUTIONAL  FUNDS. In addition,  BlackRock provides risk
management and investment  system services to institutional  investors under the
BLACKROCK SOLUTIONS name. Clients are served from the Company's  headquarters in
New York City, as well as offices in Wilmington,  DE, San Francisco,  Edinburgh,
Scotland,  Tokyo,  Japan,  and  Hong  Kong.  BlackRock  is a  member  of The PNC
Financial  Services  Group,  Inc.  (NYSE:  PNC), one of the largest  diversified
financial services  organizations in the United States, and is majority-owned by
PNC and by BlackRock employees.

     BlackRock's fixed income product was introduced in 1988 by a team of highly
seasoned  fixed  income   professionals.   These   professionals  had  extensive
experience   creating,   analyzing   and  trading  a  variety  of  fixed  income
instruments,  including the most complex structured securities. In fact, several
individuals  at BlackRock  were  responsible  for  developing  many of the major
innovations  in  the  mortgage-backed   and  asset-backed   securities  markets,
including   the  creation  of  the  first  CMO,  the  floating   rate  CMO,  the
senior/subordinated pass-through and the multi-class asset-backed security.

     BlackRock  is unique  among  asset  management  and  advisory  firms in the
emphasis it places on the  development of proprietary  analytical  capabilities.
Over one  quarter of the  firm's  professionals  are  dedicated  to the  design,
maintenance  and use of these  systems,  which are not  otherwise  available  to
investors. BlackRock's proprietary analytical tools are used for evaluating, and
designing fixed income investment  strategies for client portfolios.  Securities
purchased include mortgages,  corporate bonds,  municipal bonds and a variety of
hedging instruments.

     BlackRock  has  developed  investment  products  that respond to investors'
needs and has been  responsible  for several  major  innovations  in  closed-end
funds. In fact,  BlackRock  introduced the first  closed-end  mortgage fund, the
first taxable and tax-exempt  closed-end funds to offer a finite term, the first
closed-end  fund to  achieve a AAA rating by  Standard  & Poor's,  and the first
closed-end  fund to invest  primarily in North American  Government  securities.
Currently,  BlackRock's closed-end funds have dividend reinvestment plans, which
are designed to provide  ongoing  demand for the stock in the secondary  market.
BlackRock  manages a wide range of  investment  vehicles,  each having  specific
investment objectives and policies.

     In view of our  continued  desire to provide a high level of service to all
our shareholders, BlackRock maintains a toll-free number for your questions. The
number is (800) 227-7BFM (7236).  We encourage you to call us with any questions
that you may have about your BlackRock  funds and we thank you for the continued
trust that you place in our abilities.

                                       19
<PAGE>


---------
BLACKROCK
---------

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.
345 Park Avenue
New York, NY 10154

CUSTODIAN
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 699-1BFM

TRANSFER AGENT
EquiServe Trust Company, N.A.
150 Royall Street
Canton, MA 02021

AUCTION AGENT
The Bank of New York
Five 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
Four Times Square
New York, NY 10036

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

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

                                                  09248L-10-6
[RECYCLE LOGO] Printed on recycled paper          09248L-20-5
                                                  09248L-30-4


---------
BLACKROCK
---------
NEW YORK
MUNICIPAL
INCOME TRUST
=========================
ANNUAL REPORT
OCTOBER 31, 2001



                                                                [BLACKROCK LOGO]

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