Report of Independent Registered Public Accounting Firm

To the Board of Directors
Dreyfus Municipal Income, Inc.

We have examined management's assertion about 
Dreyfus Municipal Income, Inc.'s 
(the "Company") compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 
of the Investment Company Act of 1940 ("the Act") 
as of February 28, 2004, with respect to securities 
and similar investments reflected in the investment 
account of the Company, included in the accompanying
Management Statement Regarding Compliance with 
Certain Provisions of the Investment Company Act of 
1940.  Management is responsible for the Company's
compliance with those requirements.  Our responsibility 
is to express an opinion on management's assertion 
about the Company's compliance based on our
examination.

Our examination was made in accordance with attestation
standards established by the Public Company Accounting
Oversight Board (United States) and accordingly, included
examining, on a test basis, evidence about the Company's
compliance with those requirements and performing such 
other procedures as we considered necessary in the
circumstances. Included among our procedures were the
following tests performed as of February 28, 2004, 
and with respect to agreement of security and similar
investments purchases and sales, for the period from 
September 30, 2003 (the date of last examination) 
through February 28, 2004;

Count and inspection of all securities and similar 
investments located in the vault of Mellon Bank in New 
York, without prior notice to management;

Confirmation of all securities and similar investments 
held by institutions in book entry form (i.e., the Federal
Reserve Bank of Boston, the Depository Trust Company 
and the Participant Trust Company);

Reconciliation of confirmation results as to all such 
securities and investments to the books and records 
of the Company and Mellon Bank;

Confirmation of all repurchase agreements, if any, 
with brokers/banks and agreement of underlying 
collateral with Mellon Bank's records;

We believe that our examination provides a reasonable 
basis for our opinion. Our examination does not provide 
a legal determination on the Company's compliance with
specified requirements.

In our opinion, management's assertion that 
Dreyfus Municipal Income, Inc. 
was in compliance with the requirements of subsections (b) 
and (c) of Rule 17f-2 of the Investment Company Act 
of 1940 as of February 28, 2004 with respect to 
securities and similar investments reflected in the
investment account of the Company is fairly stated, in 
all material respects.

This report is intended solely for the information and use of
management of Dreyfus Municipal Income, Inc. 
and the Securities and Exchange Commission and should  
not be used for any other purpose.

               ERNST & YOUNG LLP

New York, New York
April 15, 2004




          UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
       Washington, DC 20549
                 
           FORM N-17f-2

Certificate of Accounting or Securities and Similar
  Investments in the Custody of 
 Management Investment Companies

Pursuant to Rule 17f-2 [17 CRF 270.17f-2]

1. Investment Company Act File     Date examination
    Number:              completed:
    811-5652             04-15-04

2.   State Identification Number:

AL   AK   AZ   AR   CA   CO
CT   DE   DC   FL   GA   HI
ID   IL   IN   IA   KS   KY
LA   ME   MD   MA   MI   MN
MS   MO   MI   NE   NV   NH
NJ   NM   NY   NC   ND   OH   
OK   OR   PA   RI   SC   SD
TN   TX   UT   VT   VA   WA
WV   WI   WY   PUERTO
               RICO

Other
Specify:

3.   Exact name of investment company as specified in
     registration statement:

4.   Address of principal executive office: (number, 
     street, city, state,  zip code) 200 Park Avenue, 
     55th Floor , New York, NY 10166

INSTRUCTIONS

     The Form must be completed by investment
     companies that have custody of securities or 
     similar investments

Investment Company

1.   All items must be completed by the investment
     company.

2.   Give this Form to the independent public 
     accountant who, in compliance with Rule 17f-2 
     under the Act and applicable state law, examine
     securities and similar investments in the custody 
     of the investment company.

Accountant

3.   Submit this Form to the Securities and Exchange
     Commission and appropriate state securities
     administrators when filing the certificate of
     accounting required by Rule 17f-2 under the 
     Act and applicable state law.  File the original 
     and one copy with the Securities and Exchange
     Commissions's principal office in Washington 
     D.C., one copy with the regional office for the 
     region in which the investment company's
     principal business operations are conducted, 
     and one copy with the appropriate state
     administrator(s), if applicable.
     
 THIS FORM MUST BE GIVEN TO YOUR 
  INDEPENDENT PUBLIC ACCOUNTANT
                 
                 
Management Statement Regarding Compliance with 
        Certain Provisions
of the Investment Company Act of 1940
                 
We, as members of management of 
Dreyfus Municipal Income, Inc. 
(the "Company"), are responsible for complying with the
requirements of subsections (b) and (c) of Rule 17f-2,
"Custody of Investments by Registered Management
Investment Companies," of the Investment Company 
Act of 1940.  We are also responsible for establishing 
and maintaining effective controls over compliance 
with those requirements.  We have performed an 
evaluation  of the Company's compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 
as of February 28, 2004.

Based on this evaluation, we assert that the Company 
was in compliance with the requirements of subsections 
(b) and (c) of Rule 17f-2 of the Investment Company 
Act of 1940 as of February 28, 2004 with respect to 
securities and similar investments reflected in the 
investment account  of the Company.

Dreyfus Municipal Income, Inc.

By:

     /s/Jim Windels         
     Jim Windels,
     Treasurer
     The Dreyfus Corporation