UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT

INVESTMENT COMPANY

Investment Company Act file number 811-05652

DREYFUS MUNICIPAL INCOME, INC.

(Exact name of Registrant as specified in charter)

c/o The Dreyfus Corporation

200 Park Avenue

New York, New York 10166

(Address of principal executive offices) (Zip code)

Michael A. Rosenberg, Esq.

200 Park Avenue

New York, New York 10166

(Name and address of agent for service)

Registrant's telephone number, including area code: (212) 922-6000

Date of fiscal year end:		9/30
Date of reporting period:		6/30/07

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FORM N-Q

Item 1. Schedule of Investments.

STATEMENT OF INVESTMENTS
Dreyfus Municipal Income, Inc.
June 30, 2007 (Unaudited)
Long-Term Municipal		Coupon		Maturity		Principal
Investments--158.4%		Rate (%)		Date		Amount ($)		Value ($)
Alabama--6.5%
Jefferson County,
Sewer Revenue Capital
Improvement Warrants (Insured;
FGIC)		5.75		2/1/09		7,500,000 a		7,789,275
The Board of Trustees of the
University of Alabama, HR
(University of Alabama at
Birmingham) (Insured; MBIA)		5.88		9/1/10		4,620,000 a		4,926,814
Alaska--3.6%
Alaska Housing Finance
Corporation, General Mortgage
Revenue (Insured; MBIA)		6.05		6/1/39		6,845,000		6,979,504
Arkansas--1.6%
Independence County,
PCR (Entergy Arkansas, Inc.
Project)		5.00		1/1/21		3,000,000		3,050,730
California--15.9%
ABAG Financial Authority for
Nonprofit Corporations,
Insured Revenue, COP (Odd
Fellows Home of California)		6.00		8/15/24		5,000,000		5,058,350
California Department of Veteran
Affairs, Home Purchase Revenue		5.20		12/1/28		2,950,000		2,951,209
California Educational Facilities
Authority, Revenue (Mills
College)		5.00		9/1/34		2,000,000		2,034,760
California Health Facilities
Financing Authority, Revenue
(Sutter Health)		6.25		8/15/35		2,500,000		2,683,875
California Housing Finance Agency,
Home Mortgage Revenue		4.80		8/1/36		2,500,000		2,421,800
California Statewide Communities
Development Authority, COP
(Catholic Healthcare West)		6.50		7/1/10		3,545,000 a		3,838,207
California Statewide Communities
Development Authority, COP
(Catholic Healthcare West)		6.50		7/1/20		1,455,000		1,571,473
Chabot-Las Positas Community
College District, GO (Insured;
AMBAC)		0.00		8/1/32		6,000,000		1,700,160
Del Mar Race Track Authority,
Revenue		5.00		8/15/25		2,500,000		2,523,125
Golden State Tobacco
Securitization Corporation,

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Tobacco Settlement
Asset-Backed Bonds		7.80		6/1/13		3,000,000 a		3,587,160
Golden State Tobacco
Securitization Corporation,
Tobacco Settlement
Asset-Backed Bonds		5.75		6/1/47		2,500,000		2,614,300
Colorado--10.3%
Colorado Springs,
HR		6.38		12/15/10		2,835,000 a		3,073,849
Colorado Springs,
HR		6.38		12/15/30		2,890,000		3,085,162
Denver City and County,
Special Facilities Airport
Revenue (United Airlines
Project)		6.88		10/1/32		2,480,000		2,483,472
University of Northern Colorado
Board of Trustees, Auxiliary
Facilities System Revenue
(Insured; FSA)		5.00		6/1/35		11,000,000 b,c		11,351,670
District of Columbia--1.4%
District of Columbia,
Revenue (Catholic University
America Project) (Insured;
AMBAC)		5.63		10/1/09		1,605,000 a		1,679,360
District of Columbia,
Revenue (Catholic University
America Project) (Insured;
AMBAC)		5.63		10/1/29		475,000		494,755
District of Columbia Housing
Finance Agency, SFMR
(Collateralized: FHA, FNMA,
GNMA and GIC; Trinity Funding)		7.45		12/1/30		505,000		513,024
Florida--1.4%
Orange County Health Facilities
Authority, HR (Orlando
Regional Healthcare System)		6.00		10/1/09		30,000 a		31,597
Orange County Health Facilities
Authority, HR (Orlando
Regional Healthcare System)		6.00		10/1/26		1,470,000		1,528,197
South Lake County Hospital
District, Revenue (South Lake
Hospital, Inc.)		5.80		10/1/34		1,095,000		1,129,744
Georgia--.6%
Milledgeville and Baldwin County
Development Authority, Revenue
(Georgia College and State
University Foundation Property
III, LLC Student Housing
System Project)		5.25		9/1/14		1,000,000 a		1,076,640
Illinois--10.4%
Chicago
(Insured; FGIC)		6.13		7/1/10		3,685,000 a		3,945,530

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Chicago
(Insured; FGIC)		6.13		7/1/10		315,000 a		337,271
Illinois Development Finance
Authority, Revenue (Community
Rehabilitation Providers
Facilities Acquisition Program)		8.75		3/1/10		55,000		55,221
Illinois Health Facilities
Authority, Revenue (Advocate
Health Care Network)		6.13		11/15/10		5,800,000 a		6,192,138
Illinois Health Facilities
Authority, Revenue (OSF
Healthcare System)		6.25		11/15/09		7,000,000 a		7,436,030
Illinois Health Facilities
Authority, Revenue (Swedish
American Hospital)		6.88		5/15/10		2,000,000 a		2,155,640
Indiana--2.1%
Anderson,
EDR and Improvement Bonds
(Anderson University Project)		5.00		10/1/32		1,450,000		1,422,363
Franklin Township School Building
Corporation, First Mortgage
Bonds		6.13		7/15/10		2,500,000 a		2,700,750
Iowa--.6%
Coralville,
Annual Appropriation Urban
Renewal Tax Increment Revenue		5.00		6/1/47		1,275,000		1,240,371
Kansas--1.3%
Unified Government of Wyandotte
County/Kansas City, Tax-Exempt
Sales Tax Special Tax
Obligation Revenue
(Redevelopment Project Area B)		5.00		12/1/20		2,500,000		2,555,950
Maryland--4.9%
Maryland Economic Development
Corporation, Student Housing
Revenue (University of
Maryland, College Park Project)		5.63		6/1/13		2,000,000 a		2,174,740
Maryland Health and Higher
Educational Facilities
Authority, Revenue (The Johns
Hopkins University Issue)		6.00		7/1/09		7,000,000 a		7,360,290
Massachusetts--9.2%
Massachusetts Bay Transportation
Authority, Assessment Revenue		5.00		7/1/14		5,000,000 a		5,304,400
Massachusetts Development Finance
Agency, SWDR (Dominion Energy
Brayton Point Issue)		5.00		2/1/36		2,000,000		2,002,800
Massachusetts Health and
Educational Facilities
Authority, Healthcare System
Revenue (Covenant Health
Systems Obligated Group Issue)		6.00		7/1/31		2,500,000		2,667,100

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Massachusetts Housing Finance
Agency, SFHR		5.00		12/1/31		2,500,000		2,494,650
Massachusetts Industrial Finance
Agency, Water Treatment
Revenue
(Massachusetts-American
Hingham Project)		6.95		12/1/35		5,235,000		5,304,154
Michigan--3.6%
Hancock Hospital Finance
Authority, Mortgage Revenue
(Portgage Health) (Insured;
MBIA)		5.45		8/1/08		2,200,000 a		2,236,454
Michigan Strategic Fund,
SWDR (Genesee Power Station
Project)		7.50		1/1/21		4,685,000		4,684,532
Minnesota--1.4%
Minnesota Agricultural and
Economic Development Board,
Health Care System Revenue
(Fairview Health Care Systems)		6.38		11/15/10		2,420,000 a		2,623,740
Minnesota Agricultural and
Economic Development Board,
Health Care System Revenue
(Fairview Health Care Systems)		6.38		11/15/29		80,000		85,245
Mississippi--3.1%
Mississippi Business Finance
Corporation, PCR (System
Energy Resources, Inc. Project)		5.88		4/1/22		6,000,000		6,058,800
Missouri--4.1%
Missouri Development Finance
Board, Infrastructure
Facilities Revenue (Branson
Landing Project)		5.00		6/1/35		2,500,000		2,525,975
Missouri Health and Educational
Facilities Authority, Health
Facilities Revenue (BJC Health
System)		5.25		5/15/32		2,500,000		2,574,300
Missouri Health and Educational
Facilities Authority, Health
Facilities Revenue (Saint
Anthony's Medical Center)		6.25		12/1/10		2,500,000 a		2,700,400
Missouri Housing Development
Commission, SFMR
(Homeownership Loan Program)
(Collateralized: FNMA and GNMA)		6.30		9/1/25		160,000		161,494
Nevada--2.2%
Clark County,
IDR (Southwest Gas Corporation
Project) (Insured; AMBAC)		6.10		12/1/38		4,000,000		4,245,960
New Jersey--.9%
New Jersey Economic Development
Authority, Cigarette Tax

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Revenue		5.50		6/15/31		1,610,000		1,683,545
New Mexico--2.4%
Farmington,
PCR (Public Service Company of
New Mexico San Juan Project)		6.30		12/1/16		3,000,000		3,064,410
New Mexico Mortgage Finance
Authority, Single Family
Mortgage Program
(Collateralized: FHLMC and
GNMA)		6.85		9/1/31		1,610,000		1,632,089
New York--2.3%
Long Island Power Authority,
Electric System General Revenue		5.00		9/1/27		1,500,000		1,537,095
New York State Dormitory
Authority, Catholic Health
Services of Long Island
Obligated Group Revenue (Saint
Francis Hospital Project)		5.00		7/1/27		2,930,000		2,946,320
North Carolina--3.1%
Gaston County Industrial
Facilities and Pollution
Control Financing Authority,
Exempt Facilities Revenue
(National Gypsum Company
Project)		5.75		8/1/35		1,500,000		1,567,260
North Carolina Eastern Municipal
Power Agency, Power System
Revenue		5.13		1/1/26		3,000,000		3,075,840
North Carolina Housing Finance
Agency, Home Ownership Revenue		6.25		1/1/29		1,415,000		1,442,536
Ohio--5.0%
Cuyahoga County,
Hospital Improvement Revenue
(The Metrohealth System
Project)		6.13		2/15/09		5,000,000 a		5,222,900
Ohio Housing Finance Agency,
Residential Mortgage Revenue
(Collateralized; GNMA)		5.75		9/1/30		65,000		65,436
Rickenbacker Port Authority,
Capital Funding Revenue (OASBO
Expanded Asset Pooled)		5.38		1/1/32		4,090,000		4,326,198
Oklahoma--1.3%
Oklahoma Development Finance
Authority, Revenue (Saint John
Health System)		6.00		2/15/29		2,500,000		2,591,100
Pennsylvania--7.9%
Delaware County Industrial
Development Authority, Water
Facilities Revenue (Aqua
Pennsylvania, Inc. Project)
(Insured; FGIC)		5.00		11/1/38		3,375,000		3,434,636
Pennsylvania Economic Development

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Financing Authority, RRR
(Northampton Generating
Project)		6.60		1/1/19		3,500,000		3,534,930
Sayre Health Care Facilities
Authority, Revenue (Guthrie
Health)		5.88		12/1/11		5,995,000 a		6,490,247
Sayre Health Care Facilities
Authority, Revenue (Guthrie
Health)		5.88		12/1/31		1,755,000		1,861,142
Rhode Island--1.2%
Rhode Island Housing and Mortgage
Finance Corporation,
Homeownership Opportunity
Revenue		4.70		10/1/32		2,405,000		2,292,374
South Carolina--11.0%
Lancaster Educational Assistance
Program, Inc., Installment
Purchase Revenue (The School
District of Lancaster County,
South Carolina, Project)		5.00		12/1/26		5,000,000		5,049,200
Medical University of South
Carolina, Hospital Facilities
Revenue		6.00		7/1/09		2,500,000 a		2,624,200
Piedmont Municipal Power Agency,
Electric Revenue		5.25		1/1/21		3,500,000		3,549,140
Securing Assets for Education,
Installment Purchase Revenue
(Berkeley County School
District Project)		5.13		12/1/30		2,500,000		2,589,675
Tobacco Settlement Revenue
Management Authority of South
Carolina, Tobacco Settlement
Asset-Backed Bonds		6.38		5/15/28		2,900,000		3,106,654
Tobacco Settlement Revenue
Management Authority of South
Carolina, Tobacco Settlement
Asset-Backed Bonds		6.38		5/15/30		3,750,000		4,341,900
Texas--11.8%
Brazos River Harbor Navigation
District, Revenue (The Dow
Chemical Company Project)		4.95		5/15/33		2,000,000		1,984,320
Cities of Dallas and Fort Worth,
Dallas/Fort Worth
International Airport, Joint
Revenue Improvement (Insured;
FSA)		5.00		11/1/35		2,500,000		2,510,225
Gregg County Health Facilities
Development Corporation, HR
(Good Shepherd Medical Center
Project) (Insured; Radian)		6.38		10/1/10		2,500,000 a		2,703,325
Harris County Health Facilities
Development Corporation, HR

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(Memorial Hermann Healthcare
System)		6.38		6/1/11		3,565,000 a		3,896,509
Port of Corpus Christi Authority
of Nueces County, Revenue
(Union Pacific Corporation
Project)		5.65		12/1/22		4,500,000		4,662,225
Texas
(Veterans Housing Assistance
Program) (Collateralized; FHA)		6.10		6/1/31		7,000,000		7,260,190
Utah--.1%
Utah Housing Finance Agency,
SFMR (Collateralized; FHA)		6.00		1/1/31		185,000		188,006
Vermont--1.1%
Vermont Educational and Health
Buildings Financing Agency,
Revenue (Saint Michael's
College Project)		6.00		10/1/28		1,500,000		1,632,870
Vermont Housing Finance Agency,
SFHR (Insured; FSA)		6.40		11/1/30		460,000		464,683
Washington--2.7%
Washington Higher Educational
Facilities Authority, Revenue
(Whitman College)		5.88		10/1/09		5,000,000 a		5,216,950
West Virginia--3.9%
Braxton County,
SWDR (Weyerhaeuser Company
Project)		5.80		6/1/27		7,450,000		7,602,203
Wisconsin--5.1%
Badger Tobacco Asset
Securitization Corporation,
Tobacco Settlement
Asset-Backed Bonds		7.00		6/1/28		2,500,000		2,786,500
Wisconsin Health and Educational
Facilities Authority, Revenue
(Aurora Health Care, Inc.)		5.60		2/15/29		4,975,000		5,088,729
Wisconsin Health and Educational
Facilities Authority, Revenue
(Marshfield Clinic)		5.38		2/15/34		2,000,000		2,061,820
Wyoming--.8%
Sweetwater County,
SWDR (FMC Corporation Project)		5.60		12/1/35		1,500,000		1,575,375
U.S. Related--13.6%
Puerto Rico Highways and
Transportation Authority,
Transportation Revenue
(Insured; MBIA)		5.00		7/1/38		8,000,000 b,c		8,176,400
Puerto Rico Highways and
Transportation Authority,
Transportation Revenue
(Insured; MBIA)		5.00		7/1/38		10,000,000 b,c		10,220,500
Puerto Rico Infrastructure
Financing Authority, Special

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Tax Revenue (Insured; AMBAC)		5.00		7/1/15		8,000,000 b,c		8,131,160
Total Long-Term Municipal Investments
(cost $293,865,875)								307,615,327
Short-Term Municipal		Coupon		Maturity		Principal
Investments--.8%		Rate (%)		Date		Amount ($)		Value ($)
Connecticut--.1%
Connecticut Health and Educational
Facilities Authority, Revenue
(Quinnipiac University Issue)
(Insured; Radian and Liquidity
Facility; JPMorgan Chase Bank)		3.88		7/1/07		100,000 d		100,000
Florida--.4%
Jacksonville,
PCR, Refunding (Florida Power
and Light Company Project)		3.92		7/1/07		100,000 d		100,000
Lee Memorial Health System Board
of Directors, HR (Lee Memorial
Health System) (Liquidity
Facility; SunTrust Bank)		3.95		7/1/07		600,000 d		600,000
Utah--.3%
Carbon County,
PCR, Refunding (Pacificorp
Projects) (Insured; AMBAC and
Liquidity Facility; The Bank
of New York)		3.90		7/1/07		700,000 d		700,000
Total Short-Term Municipal Investments
(cost $1,500,000)								1,500,000
Total Investments (cost $295,365,875)						159.2%		309,115,327
Liabilities, Less Cash and Receivables						(7.7%)		(14,973,578)
Preferred Stock, at redemption value						(51.5%)		(100,000,000)
Net Assets Applicable
to Common Shareholders						100.0%		194,141,749

a		These securities are prerefunded; the date shown represents the prerefunded date. Bonds which are prerefunded are
		collateralized by U.S. Government securities which are held in escrow and are used to pay principal and interest on the
		municipal issue and to retire the bonds in full at the earliest refunding date.
b		Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in
		transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2007, these securities
		amounted to $37,879,730 or 19.5% of net assets applicable to Common Shareholders.
c		Collateral for floating rate borrowings.
d		Securities payable on demand. Variable interest rate--subject to periodic change.

Securities valuation policies and other investment related disclosures are hereby incorporated by reference to the annual and semi-annual reports previously filed with the Securities and Exchange Commission on Form N-CSR.

Summary of Abbreviations
ACA		American Capital Access		AGC		ACE Guaranty Corporation
AGIC		Asset Guaranty Insurance Company		AMBAC		American Municipal Bond Assurance Corporation
ARRN		Adjustable Rate Receipt Notes		BAN		Bond Anticipation Notes
BIGI		Bond Investors Guaranty Insurance		BPA		Bond Purchase Agreement
CGIC		Capital Guaranty Insurance Company		CIC		Continental Insurance Company

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CIFG		CDC Ixis Financial Guaranty		CMAC		Capital Market Assurance Corporation
COP		Certificate of Participation		CP		Commercial Paper
EDR		Economic Development Revenue		EIR		Environmental Improvement Revenue
FGIC		Financial Guaranty Insurance Company		FHA		Federal Housing Administration
FHLB		Federal Home Loan Bank		FHLMC		Federal Home Loan Mortgage Corporation
FNMA		Federal National Mortgage Association		FSA		Financial Security Assurance
GAN		Grant Anticipation Notes		GIC		Guaranteed Investment Contract
GNMA		Government National Mortgage Association		GO		General Obligation
HR		Hospital Revenue		IDB		Industrial Development Board
IDC		Industrial Development Corporation		IDR		Industrial Development Revenue
LOC		Letter of Credit		LOR		Limited Obligation Revenue
LR		Lease Revenue		MBIA		Municipal Bond Investors Assurance Insurance
						Corporation
MFHR		Multi-Family Housing Revenue		MFMR		Multi-Family Mortgage Revenue
PCR		Pollution Control Revenue		PILOT		Payment in Lieu of Taxes
RAC		Revenue Anticipation Certificates		RAN		Revenue Anticipation Notes
RAW		Revenue Anticipation Warrants		RRR		Resources Recovery Revenue
SAAN		State Aid Anticipation Notes		SBPA		Standby Bond Purchase Agreement
SFHR		Single Family Housing Revenue		SFMR		Single Family Mortgage Revenue
SONYMA		State of New York Mortgage Agency		SWDR		Solid Waste Disposal Revenue
TAN		Tax Anticipation Notes		TAW		Tax Anticipation Warrants
TRAN		Tax and Revenue Anticipation Notes		XLCA		XL Capital Assurance

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Item 2. Controls and Procedures.

(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the Registrant's most recently ended fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 3.		Exhibits.
(a)		Certifications of principal executive and principal financial officers as required by Rule 30a-2(a)
under the Investment Company Act of 1940.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

DREYFUS MUNICIPAL INCOME, INC.

By:		/s/ J. David Officer
		J. David Officer
		President
Date:		August 13, 2007

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:		/s/ J. David Officer
		J. David Officer
		President
Date:		August 13, 2007
By:		/s/ James Windels
		James Windels
		Treasurer
Date:		August 13, 2007

EXHIBIT INDEX

(a) Certifications of principal executive and principal financial officers as required by Rule 30a-

2(a) under the Investment Company Act of 1940. (EX-99.CERT)

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