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 May 31, 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 May 31, 2004, 
and with respect to agreement of security and similar
investments purchases and sales, for the period from 
February 28, 2004 (the date of last examination) 
through May 31, 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 May 31, 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
July 14, 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   	           	 	07-14-04

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 May 31, 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 May 31, 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