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		811-06506

Western Asset Intermediate Muni Fund Inc.
(Exact name of registrant as specified in charter)

125 Broad Street, New York, NY				10004
(Address of principal executive offices)				(Zip code)

Robert I. Frenkel, Esq. Legg Mason & Co., LLC 300 First Stamford Place Stamford, CT 06902
(Name and address of agent for service)

Registrant's telephone number, including area code:			1-800-451-2010

Date of fiscal year end:	December 31

Date of reporting period:	March 31, 2007

WESTERN ASSET INTERMEDIATE MUNI FUND INC.

FORM N-Q

MARCH 31, 2007

ITEM 1. SCHEDULE OF INVESTMENTS

Western Asset Intermediate Muni Fund, Inc.

Schedule of Investments (unaudited)

March 31, 2007

Face Amount		Rating‡	Security	Value
MUNICIPAL BONDS — 98.5%
Alabama — 3.0%
$	3,000,000	AAA	Alabama State Public School & College Authority, FSA-Insured, 5.125% due 11/1/15	$	3,107,670
1,225,000		AAA	Baldwin County, AL, Board of Education, Capital Outlay School Warrants, AMBAC-Insured, 5.000% due 6/1/20	1,299,749
179,127		AAA	Birmingham, AL, Medical Clinic Board Revenue, Baptist Medical Center, 8.300% due 7/1/08 (a)	184,834
1,000,000		AAA	Saraland, AL, GO, MBIA-Insured, 5.250% due 1/1/15	1,064,890
			Total Alabama	5,657,143
Alaska — 1.6%
1,000,000		NR	Alaska Industrial Development & Export Authority Revenue, Williams Lynxs Alaska Cargo Port LLC, 8.000% due 5/1/23 (b)	1,073,380
500,000		AAA	Anchorage, AK, GO, Refunding, FGIC-Insured, 6.000% due 10/1/14	572,535
1,250,000		AAA	North Slope Boro, AK, Refunding, Series A, MBIA-Insured, 5.000% due 6/30/15	1,353,350
			Total Alaska	2,999,265
Arizona — 0.3%
			Maricopa County, AZ, Hospital Revenue:
15,000		AAA	Samaritan Health Service, 7.625% due 1/1/08 (a)	15,440
444,000		AAA	St. Lukes Medical Center, 8.750% due 2/1/10 (a)	481,305
			Total Arizona	496,745
Arkansas — 1.4%
1,500,000		BBB	Arkansas State Development Finance Authority Hospital Revenue, Washington Regional Medical Center, Call 2/1/10 @ 100, 7.000% due 2/1/15 (c)	1,631,940
1,000,000		BB	Warren County, AR, Solid Waste Disposal Revenue, Potlatch Corp. Project, 7.000% due 4/1/12 (b)	1,080,060
			Total Arkansas	2,712,000
California — 4.8%
1,500,000		NR	Barona, CA, Band of Mission Indians, GO, 8.250% due 12/1/20	1,554,075
3,000,000		AA+	California State Economic Recovery, GO, Series A, 5.000% due 7/1/17	3,145,620
10,000		AAA	Loma Linda, CA, Community Hospital Corp. Revenue, First Mortgage, 8.000% due 12/1/08 (a)	10,670
			Los Angeles, CA:
1,015,000		NR	COP, Hollywood Presbyterian Medical Center, INDLC-Insured, 9.625% due 7/1/13 (a)	1,198,370
1,000,000		AAA	Union School District, Series A, MBIA-Insured, Call 7/1/13 @ 100, 5.375% due 7/1/18 (c)	1,098,380
1,450,000		AAA	Morgan Hill, CA, USD, FGIC-Insured, Call 8/1/10 @ 101, 5.750% due 8/1/17 (c)	1,563,462
330,000		AAA	San Francisco, CA, Airport Improvement Corp. Lease Revenue, United Airlines, Inc., 8.000% due 7/1/13 (a)	373,118
105,000		AAA	San Leandro, CA, Hospital Revenue, Vesper Memorial Hospital, 11.500% due 5/1/11 (a)	121,922
			Total California	9,065,617
Colorado — 5.2%
1,860,000		Aaa(d)	Broomfield, CO, COP, Open Space Park & Recreation Facilities, AMBAC-Insured, 5.500% due 12/1/20	1,967,601
			Colorado Educational & Cultural Facilities Authority Revenue Charter School:
1,000,000		BBB-	Bromley East Project, Series A, Call 9/15/11 @ 100, 7.000% due 9/15/20 (c)	1,134,150
1,155,000		AAA	Bromley School Project, XLCA-Insured, 5.125% due 9/15/20 (e)	1,250,784

See Notes to Schedule of Investments.

Western Asset Intermediate Muni Fund, Inc.

Schedule of Investments (unaudited) (continued)

March 31, 2007

Face Amount		Rating‡	Security	Value
Colorado — 5.2% (continued)
$	1,350,000	AAA	Refunding & Improvement, University Lab School, XLCA-Insured, 5.250% due 6/1/24	$	1,461,051
500,000		Baa2(d)	University Lab School Project Call 6/1/11 @ 100, 6.125% due 6/1/21 (c)	547,315
710,000		BBB	Denver, CO, Health & Hospital Authority, Series A, 6.250% due 12/1/16	764,734
1,765,000		AAA	Pueblo, CO, Bridge Waterworks Water Revenue, Improvement Series A, FSA-Insured, Call 11/1/10 @ 100, 6.000% due 11/1/14 (c)	1,904,629
750,000		A	SBC Metropolitan District, CO, GO, ACA-Insured, 5.000% due 12/1/25	776,055
			Total Colorado	9,806,319
Connecticut — 3.9%
2,000,000		AA	Connecticut State HEFA Revenue, Bristol Hospital, Series B, 5.500% due 7/1/21	2,165,600
1,855,000		A	Connecticut State Special Obligation Parking Revenue, Bradley International Airport, Series A, ACA-Insured, 6.375% due 7/1/12 (b)	2,001,526
3,000,000		AAA	Connecticut State Special Tax Obligation Revenue, Series B, FSA-Insured, 5.375% due 10/1/13*	3,213,870
			Total Connecticut	7,380,996
Florida — 4.1%
150,000		AAA	Lee County, FL, Southwest Florida Regional Airport Revenue, MBIA-Insured, 8.625% due 10/1/09 (a)	160,124
3,250,000		AAA	Lee, FL, Memorial Health System, Hospital Revenue, Series A, FSA-Insured, 5.750% due 4/1/14 (e)	3,531,060
1,375,000		NR	Old Palm Community Development District, FL, Palm Beach Gardens, Series B, 5.375% due 5/1/14	1,394,071
			Orange County, FL, Health Facilities Authority Revenue:
605,000		NR	First Mortgage Healthcare Facilities, 8.750% due 7/1/11	637,725
1,500,000		A+	Hospital Adventist Health Systems, Call 11/15/12 @ 100, 6.250% due 11/15/24 (c)	1,690,605
360,000		Aaa(d)	Southern Adventist Hospital, Adventist Health Systems, 8.750% due 10/1/09 (a)	384,962
			Total Florida	7,798,547
Georgia — 5.2%
970,000		Aaa(d)	Athens, GA, Housing Authority Student Housing Lease Revenue, University of Georgia East Campus, AMBAC-Insured, 5.250% due 12/1/23	1,036,368
650,000		BBB+	Chatham County, GA, Hospital Authority Revenue, Hospital Memorial Health Medical Center, Series A, 6.000% due 1/1/17	697,541
1,000,000		AAA	Gainesville, GA, Water & Sewer Revenue, FSA-Insured, Call 11/15/11 @ 100, 5.375% due 11/15/20 (c)	1,073,480
			Georgia Municipal Electric Authority:
3,000,000		AAA	Power Revenue, Refunding, Series A, FSA-Insured, 5.000% due 1/1/18	3,166,530
500,000		A	Power System Revenue, Series X, 6.500% due 1/1/12	531,835
1,000,000		AAA	Griffin, GA, Combined Public Utilities Revenue, Refunding & Improvement, AMBAC-Insured, 5.000% due 1/1/21	1,065,270
2,120,000		AAA	Metropolitan Atlanta Rapid Transit Georgia Sales Tax Revenue, Series E, 7.000% due 7/1/11 (a)	2,322,905
			Total Georgia	9,893,929
Illinois — 4.1%
535,000		C(d)	Bourbonnais, IL, Industrial Development Revenue, Refunding Kmart Corp. Project, 6.600% due 10/1/06 (f)	10,700
1,500,000		AAA	Chicago, IL, O’Hare International Airport Revenue, Refunding Bonds, Lien A-2, FSA-Insured, 5.750% due 1/1/19 (b)	1,646,235
1,000,000		AAA	Cicero, IL, Tax Increment, Series A, XLCA-Insured, 5.250% due 1/1/21	1,077,620
970,000		AAA	Glendale Heights, IL, Hospital Revenue, Refunding Glendale Heights Project, Series B, 7.100% due 12/1/15 (a)	1,114,569
700,000		AA	Harvey, IL, GO, Radian-Insured, 6.700% due 2/1/09	701,708

See Notes to Schedule of Investments.

Western Asset Intermediate Muni Fund, Inc.

Schedule of Investments (unaudited) (continued)

March 31, 2007

Face Amount		Rating‡	Security	Value
Illinois — 4.1% (continued)
$	430,000	BBB	Illinois Development Finance Authority, Chicago Charter School Foundation Project A, 5.250% due 12/1/12 (a)	$	451,620
355,000		AAA	Illinois Health Facilities Authority Revenue, Methodist Medical Center of Illinois Project, 9.000% due 10/1/10 (a)	387,213
1,310,000		AAA	Kane County, IL, GO, FGIC-Insured, 5.500% due 1/1/14	1,404,936
			Mount Veron, IL, Elderly Housing Corp., First Lien Revenue:
250,000		Ba3(d)	7.875% due 4/1/07	250,000
270,000		Ba3(d)	7.875% due 4/1/08	271,998
1,000,000		Aaa(d)	Will County, IL, GO, School District North 122 New Lenox, Capital Appreciation Refunding School, Series D, FSA-Insured, zero coupon bond to yield 5.188% due 11/1/24	462,180
			Total Illinois	7,778,779
Indiana — 0.6%
800,000		AAA	Ball State University, Indiana University Revenue, Student Fee, Series K, FGIC-Insured, 5.750% due 7/1/20	866,336
185,000		AAA	Madison County, IN, Hospital Authority Facilities Revenue, Community Hospital of Anderson Project, 9.250% due 1/1/10 (a)	201,225
			Total Indiana	1,067,561
Iowa — 1.1%
1,000,000		A1(d)	Iowa Finance Authority, Health Care Facilities Revenue, Genesis Medical Center, 6.250% due 7/1/20	1,067,700
835,000		AAA	Muscatine, IA, Electric Revenue, 9.700% due 1/1/13 (a)	984,114
			Total Iowa	2,051,814
Kansas — 1.8%
1,000,000		BBB	Burlington, KS, Environmental Improvement Revenue, Kansas City Power & Light Project, Refunding, 4.750% due 9/1/15 (g)(h)	1,002,980
2,245,000		AA	Johnson County, KS, Union School District, Series A, Call 10/1/09 @ 100, 5.125% due 10/1/20 (c)	2,325,887
			Total Kansas	3,328,867
Louisiana — 1.1%
285,000		AAA	Louisiana Public Facilities Authority Hospital Revenue, Southern Baptist Hospital Inc. Project, Aetna-Insured, 8.000% due 5/15/12 (a)	314,449
1,690,000		AAA	Monroe, LA, Sales & Use Tax Revenue, FGIC-Insured, 5.625% due 7/1/25	1,849,418
			Total Louisiana	2,163,867
Maryland — 1.7%
1,000,000		AAA	Maryland State Health & Higher EFA Revenue, Refunding Mercy Medical Center, FSA-Insured, 6.500% due 7/1/13	1,094,120
2,000,000		AAA	Montgomery County, MD, GO, 5.250% due 10/1/14	2,151,900
			Total Maryland	3,246,020
Massachusetts — 6.5%
485,000		AAA	Boston, MA, Water & Sewer Commission Revenue, 10.875% due 1/1/09 (a)	525,008
1,130,000		Aaa(d)	Lancaster, MA, GO, AMBAC-Insured, 5.375% due 4/15/17	1,223,914
			Massachusetts State, GO:
500,000		AAA	RITES, Series PA 993-R, MBIA-Insured, 6.489% due 5/1/09 (i)**	577,270
2,000,000		AAA	Series D, MBIA Insured, 5.500% due 11/1/15 *	2,154,540
			Massachusetts State DFA Revenue:
500,000		A	Curry College, Series A, ACA-Insured, 6.000% due 3/1/20	523,945
370,000		AAA	VOA Concord, Series A, GNMA-Collateralized, 6.700% due 10/20/21	418,718
			Massachusetts State HEFA Revenue:
			Caritas Christi Obligation, Series B:
2,000,000		BBB	6.500% due 7/1/12	2,190,480
835,000		BBB	6.750% due 7/1/16	941,730

See Notes to Schedule of Investments.

Western Asset Intermediate Muni Fund, Inc.

Schedule of Investments (unaudited) (continued)

March 31, 2007

Face Amount		Rating‡	Security	Value
Massachusetts — 6.5% (continued)
$	1,000,000	BBB-	Milford-Whitinsville Regional Hospital, Series D, Call 7/15/12 @ 101, 6.500% due 7/15/23 (c)	$	1,140,330
1,000,000		BBB+(j)	Winchester Hospital, Series E, Call 7/1/10 @ 101, 6.750% due 7/1/30 (c)	1,088,860
1,030,000		AAA	Massachusetts State Industrial Finance Agency Assisted Living Facility Revenue, Arbors at Amherst Project, GNMA-Collateralized, 5.750% due 6/20/17 (b)	1,064,989
500,000		A3(d)	New England Education Loan Marketing Corp. Massachusetts Student Loan Revenue, Subordinated Issue H, 6.900% due 11/1/09 (b)	522,895
			Total Massachusetts	12,372,679
Michigan — 3.2%
1,775,000		AAA	Carrier Creek, MI, Drain District No. 326, AMBAC-Insured, 5.000% due 6/1/24	1,883,470
1,000,000		AAA	Jenison, MI, Public Schools GO, Building and Site, FGIC-Insured, 5.500% due 5/1/20	1,080,640
1,000,000		Aaa(d)	Memphis, MI, Community Schools GO, Call 5/1/09 @ 100, 5.150% due 5/1/19 (c)	1,030,090
1,000,000		A	Michigan State Hospital Finance Authority Revenue, Oakwood Obligated Group, 5.500% due 11/1/18	1,072,200
1,000,000		AAA	Walled Lake, MI, Consolidated School District, MBIA-Insured, 5.000% due 5/1/22	1,057,080
			Total Michigan	6,123,480
Missouri — 1.6%
1,000,000		AAA	Hazelwood, MO, School District, Missouri Direct Deposit Program, Series A, FGIC-Insured, 5.000% due 3/1/23	1,060,230
405,000		BBB+(j)	Lees Summit, MO, IDA Health Facilities Revenue, John Knox Village, 5.750% due 8/15/11	424,343
1,000,000		Aaa(d)	Missouri State Environmental Improvement & Energy Resource Authority, Water Pollution Control, State Revolving Funds Program, Series C, 5.250% due 7/1/18	1,123,800
25,000		AAA	Missouri State Housing Development Community Mortgage Revenue, Series C, GNMA/FNMA-Collateralized, 7.450% due 9/1/27 (b)	25,650
290,000		AAA	Nevada, MO, Waterworks Systems Revenue, AMBAC-Insured, 10.000% due 10/1/10 (a)	326,296
			Total Missouri	2,960,319
Nebraska — 1.3%
			NebHELP Inc. Nebraska Revenue:
1,300,000		AAA	Series A-5A, MBIA-Insured, 6.200% due 6/1/13 (b)	1,326,325
1,000,000		AAA	Series A-6, MBIA-Insured, 6.450% due 6/1/18 (b)	1,049,930
			Total Nebraska	2,376,255
Nevada — 0.4%
			Henderson, NV, Health Care Facilities Revenue:
240,000		A-	Pre-Refunded, Catholic West, Series A, 6.200% due 7/1/09 (a)	241,462
535,000		A-	Unrefunded Balance, Catholic West, Series A, 6.200% due 7/1/09	559,021
			Total Nevada	800,483
New Hampshire — 0.5%
815,000		A	New Hampshire HEFA, Covenant Healthcare System, 6.500% due 7/1/17	905,547
New Jersey — 0.1%
150,000		AAA	Ringwood Borough, NJ, Sewer Authority Special Obligation, 9.875% due 7/1/13 (a)	176,358
New Mexico — 1.5%
1,100,000		AAA	Bernalillo County, NM, Gross Receipts Tax Revenue, AMBAC-Insured, 5.250% due 10/1/18	1,228,909

See Notes to Schedule of Investments.

Western Asset Intermediate Muni Fund, Inc.

Schedule of Investments (unaudited) (continued)

March 31, 2007

Face Amount		Rating‡	Security	Value
New Mexico — 1.5% (continued)
$	1,415,000	AAA	New Mexico Finance Authority Revenue, Subordinated Lien, Public Project Revolving Fund, Series A, MBIA-Insured, 5.000% due 6/15/19	$	1,519,526
			Total New Mexico	2,748,435
New York — 3.6%
730,000		NR	New York City, NY, IDA, Civic Facilities Revenue, Community Hospital Brooklyn, 6.875% due 11/1/10	746,067
1,760,000		AAA	New York State Dormitory Authority Revenue, Mental Health Services Facilities, 5.000% due 2/15/18	1,883,799
2,000,000		AAA	New York State Thruway Authority, Highway & Bridge, Trust Fund Revenue, Series B, AMBAC-Insured, 5.000% due 4/1/21	2,139,820
2,000,000		AA-	Tobacco Settlement Financing Corp., New York, Asset-Backed, Series C-1, 5.500% due 6/1/14	2,070,960
			Total New York	6,840,646
North Carolina — 1.2%
90,000		AAA	Charlotte North Carolina Mortgage Revenue, Refunding Double Oaks Apartments, Series A, FNMA-Collateralized, 7.300% due 11/15/07	90,219
1,000,000		BBB	North Carolina Eastern Municipal Power Agency, Power System Revenue, Series D, 6.450% due 1/1/14	1,075,970
925,000		AAA	North Carolina Municipal Power Agency No. 1, Catawba Electricity Revenue, 10.500% due 1/1/10 (a)	1,026,398
			Total North Carolina	2,192,587
Ohio — 6.4%
1,370,000		AAA	Cleveland, OH, Waterworks Revenue, Series K, Call 1/1/12 @ 100, 5.250% due 1/1/21 (c)	1,464,571
970,000		BBB	Cuyahoga County, OH, Hospital Facilities Revenue, Canton Inc. Project, 6.750% due 1/1/10	1,008,936
1,855,000		Aaa(d)	Highland, OH, Local School District, School Improvement, FSA-Insured, Call 12/1/11 @ 100, 5.750% due 12/1/19 (c)	2,022,043
1,000,000		Aaa(d)	Kettering, OH, City School District, School Improvement, FSA-Insured, 5.000% due 12/1/19	1,066,710
			Lake County, OH, Hospital Improvement Revenue:
165,000		AAA	Lake County Memorial Hospital Project, 8.625% due 11/1/09 (a)	176,571
95,000		NR	Ridgecliff Hospital Project, 8.000% due 10/1/09 (a)	100,521
			Ohio State:
1,500,000		BBB-	Air Quality Development Authority Revenue, Cleveland Pollution Control, Series A, 6.000% due 12/1/13	1,535,400
3,010,000		AA+	GO, Conservation Project, Series A, 5.250% due 9/1/13 (e)	3,187,199
			Water Development Authority Revenue:
1,280,000		AAA	Refunding, Safe Water Service, 9.375% due 12/1/10 (a)(k)	1,392,256
175,000		AAA	Safe Water, Series 3, 9.000% due 12/1/10 (a)	188,487
			Total Ohio	12,142,694
Oklahoma — 0.7%
55,000		AAA	Oklahoma State Industries Authority Revenue, Hospital Oklahoma Health Care Corp., Series A, Call 5/1/07 @ 100, 9.125% due 11/1/08 (c)	55,219
215,000		BBB(j)	Tulsa, OK, Housing Assistance Corp. MFH Revenue, 7.250% due 10/1/07 (b)	215,643
			Tulsa, OK, Municipal Airport Trust Revenue, Refunding American Airlines, Series B:
500,000		B	5.650% due 12/1/08 (b)(g)(h)	509,050
500,000		B	6.000% due 12/1/08 (b)(g)(h)	510,695
			Total Oklahoma	1,290,607
Oregon — 0.9%
645,000		BBB+(j)	Klamath Falls, OR, International Community Hospital Authority Revenue, Merle West Medical Center Project, 8.000% due 9/1/08 (a)	667,633

See Notes to Schedule of Investments.

Western Asset Intermediate Muni Fund, Inc.

Schedule of Investments (unaudited) (continued)

March 31, 2007

Face Amount		Rating‡	Security	Value
Oregon — 0.9% (continued)
$	1,035,000	NR	Wasco County, OR, Solid Waste Disposal Revenue, Waste Connections Inc. Project, 7.000% due 3/1/12 (b)	$	1,078,056
			Total Oregon	1,745,689
Pennsylvania — 7.0%
630,000		AAA	Conneaut, PA, School District GO, AMBAC-Insured, 9.500% due 5/1/12 (a)	703,313
3,710,000		AAA	Delaware River Port Authority, Port District Project Refunding, RITES, Series A, FSA-Insured, 5.550% due 1/1/26*	4,012,847
1,000,000		Aaa(d)	Harrisburg, PA, Parking Authority Parking Revenue, FSA-Insured, 5.500% due 5/15/20	1,079,260
1,365,000		AA	Northampton County, PA, IDA Revenue, Mortgage Moravian Hall Square Project, Radian-Insured, 5.500% due 7/1/19	1,457,820
1,000,000		AAA	Pennsylvania State IDA Revenue, Economic Development, AMBAC-Insured, 5.500% due 7/1/21	1,088,750
65,000		AAA	Philadelphia, PA, Hospital Authority Revenue, Thomas Jefferson University Hospital, 7.000% due 7/1/08 (a)	66,466
1,000,000		AAA	Philadelphia, PA, School District, Series A, FSA-Insured, Call 2/1/12 @ 100, 5.500% due 2/1/23 (c)	1,079,730
2,000,000		AAA	Philadelphia, PA, Water & Wastewater, Series B, FGIC-Insured, 5.250% due 11/1/14	2,155,860
1,350,000		AAA	Pittsburgh, PA, School District GO, FSA-Insured, 5.375% due 9/1/16	1,512,283
			Total Pennsylvania	13,156,329
Rhode Island — 0.6%
1,000,000		AA	Central Falls, RI, GO, Radian-Insured, 5.875% due 5/15/15	1,057,880
South Carolina — 3.2%
50,000		AAA	Anderson County, SC, Hospital Facilities Revenue, 7.125% due 8/1/07 (a)	50,567
1,445,000		AA	Charleston, SC, Waterworks & Sewer Revenue, 5.250% due 1/1/16	1,535,110
			Greenville County, SC, School District Installment Purchase, Revenue, Building Equity Sooner for Tomorrow, Call 12/1/12 @ 101:
2,000,000		AA-	5.875% due 12/1/19 (c)	2,239,660
2,000,000		AA-	6.000% due 12/1/21 (c)	2,252,320
			Total South Carolina	6,077,657
South Dakota — 1.3%
2,400,000		Aa2(d)	Minnehana County, SD, GO, Limited Tax Certificates, Call 12/1/10 @ 100, 5.625% due 12/1/20 (c)	2,551,512
Tennessee — 0.4%
460,000		AAA	Jackson, TN, Water & Sewer Revenue, 7.200% due 7/1/12 (a)	495,562
260,000		Baa1(d)	McMinnville, TN, Housing Authority Revenue, Refunding First Mortgage Beersheba Heights, 6.000% due 10/1/09	265,442
			Total Tennessee	761,004
Texas — 12.9%
5,140,000		AAA	Austin Texas Electirc Utility System Revenue, Refunding, Series A, AMBAC-Insured, 5.000% due 11/15/19 (e)	5,533,930
2,000,000		Aa3(d)	Brazos River, TX, Harbor Navigation District, BASF Corp. Project, 6.750% due 2/1/10	2,163,180
2,000,000		AAA	Dallas, TX, Area Rapid Transit Sales Tax Revenue, Senior Lien, AMBAC-Insured, Call 12/1/11 @ 100, 5.375% due 12/1/16 (c)	2,145,580
			Dallas-Fort Worth, TX:
1,500,000		CCC+	International Airport Facility, Improvement Corp. Revenue, Refunding, American Airlines, Series C, 6.150% due 11/1/07 (b)(g)(h)	1,514,085
1,000,000		AAA	International Airport Revenue, Refunding, Series B, FSA-Insured, 5.500% due 11/1/20 (b)	1,084,920
			El Paso County, TX, Housing Finance Corp.:
270,000		Baa3(d)	La Plaza Apartments, Subordinated Series C, 8.000% due 7/1/30	276,944

See Notes to Schedule of Investments.

Western Asset Intermediate Muni Fund, Inc.

Schedule of Investments (unaudited) (continued)

March 31, 2007

Face Amount		Rating‡	Security	Value
Texas — 12.9% (continued)
$	360,000	A3(d)	MFH Revenue, Series A, American Village Communities, 6.250% due 12/1/24	$	380,358
			El Paso, TX, Water & Sewer Revenue, Refunding & Improvement, Series A, FSA-Insured:
45,000		AAA	6.000% due 3/1/15	49,499
955,000		AAA	Call 3/1/12 @ 100, 6.000% due 3/1/15 (c)	1,053,632
2,000,000		AA	Fort Worth, TX, Water & Sewer Revenue, Call 2/15/12 @ 100, 5.625% due 2/15/17 (c)	2,169,840
1,000,000		AAA	Harris County, TX, Hospital District Revenue, MBIA-Insured, 6.000% due 2/15/15	1,069,460
5,000,000		AAA	Houston, TX Independent School District, GO, Refunding Ltd., Tax Series A, PSF-GTD, 5.000% due 8/15/17 (e)	5,451,600
1,000,000		AAA	Southwest Higher Education Authority Inc., Southern Methodist University Project, AMBAC-Insured, Call 10/1/12 @ 100, 5.500% due 10/1/19 (c)	1,089,750
230,000		Aaa(d)	Tarrant County, TX, Hospital Authority Revenue, Adventist Health System-Sunbelt, 10.250% due 10/1/10 (a)	257,897
175,000		AAA	Texas State Department Housing Community Affairs Home Mortgage Revenue, RIBS Series C-2, GNMA/FNMA/FHLMC-Collateralized, 9.866% due 4/5/07 (b)(l)	175,774
			Total Texas	24,416,449
Utah — 1.7%
1,580,000		Aaa(d)	Salt Lake & Sandy, UT, Metropolitan Water District Revenue, Series A, AMBAC-Insured, 5.000% due 7/1/24	1,672,841
			Spanish Fork City, UT, Water Revenue, FSA-Insured:
1,135,000		Aaa(d)	5.500% due 6/1/16	1,227,866
350,000		Aaa(d)	Call 6/1/12 @ 100, 5.500% due 6/1/16 (c)	380,177
			Total Utah	3,280,884
Washington — 2.4%
1,000,000		Aaa(d)	Clark County, WA, School District Number 117 Camas, GO, FSA-Insured, 5.000% due 12/1/18	1,088,750
1,250,000		Aaa(d)	Cowlitz County, WA, School District, No. 122 Longview, FSA-Insured, Call 12/1/11 @ 100, 5.500% due 12/1/19 (c)	1,347,625
2,000,000		AAA	Energy Northwest Washington Electric Revenue, Project No. 3, Series A, FSA-Insured, 5.500% due 7/1/18	2,149,780
			Total Washington	4,586,155
West Virginia — 0.0%
70,000		AAA	Cabell Putnam & Wayne Counties, WV, Single - Family Residence Mortgage Revenue, FGIC-Insured, 7.375% due 4/1/10 (a)	72,906
Wisconsin — 1.2%
2,000,000		BBB	La Crosse, WI, Resource Recovery Revenue, Refunding Bonds, Northern States Power Co. Project, Series A, 6.000% due 11/1/21 (b)	2,174,820
			TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost — $180,431,174)	186,258,844
SHORT-TERM INVESTMENTS (m) — 1.5%
Florida — 0.6%
200,000		VMIG1(d)	Brevard County, FL, Health Facilities Authority, Health Care Facilities Revenue, Refunding Bonds, Health First Inc. Project, LOC-SunTrust Bank, 3.780%, 4/2/07 (m)	200,000
900,000		A-1+	Gainesville, FL, Utilities System Revenue, Series C, SPA-SunTrust Bank, 3.720%, 4/2/07 (m)	900,000
			Total Florida	1,100,000

See Notes to Schedule of Investments

Western Asset Intermediate Muni Fund, Inc.

Schedule of Investments (unaudited) (continued)

March 31, 2007

Face Amount		Rating‡	Security	Value
Nevada — 0.5%
$	1,000,000	VMIG1(d)	Las Vegas Valley, NV, Water District, GO, Water Improvement, Series C, SPA-Dexia Credit Local, 3.780%, 4/2/07 (m)	$	1,000,000
Utah — 0.4%
800,000		A-1+	Murray City, UT, Hospital Revenue, IHC Health Services Inc., Series B, SPA-JPMorgan Chase Bank, 3.770%, 4/2/07 (m)	800,000
			TOTAL SHORT-TERM INVESTMENTS (Cost — $2,900,000)	2,900,000
			TOTAL INVESTMENTS — 100.0% (Cost — $183,331,174#)	189,158,844

‡	All ratings are by Standard & Poor’s Ratings Service, unless otherwise noted.
(a)	Bonds are escrowed to maturity by government securities and/or U.S. government agency securities and are considered by the Manager to be triple-A rated even if issuer has not applied for new ratings.
(b)	Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax (“AMT”).
(c)	Pre-Refunded bonds are escrowed with government obligations and/or government agency securities and are considered by the Manager to be triple-A rated even if issuer has not applied for new ratings.
(d)	Rating by Moody’s Investors Service.
(e)	All or a portion of this security is segregated for open futures contracts
(f)	Security is currently in default.
(g)	Variable rate security. Interest rate disclosed is that which is in effect at March 31, 2007.
(h)	Maturity date shown represents the mandatory tender date.
(i)	Residual interest tax-exempt securities—coupon varies inversely with level of short-term tax-exempt interest rates.
(j)	Rating by Fitch Ratings Service.
(k)	All or a portion of this security is held at the broker as collateral for open futures contracts.
(l)	Residual interest bonds—coupon varies inversely with level of short-term tax-exempt interest rates.
(m)	Variable rate demand obligations have a demand feature under which the Fund can tender them back to the issuer on no more than 7 days notice. Date shown is the date of the next interest rate change.
*	Security represents participation in a trust that issued inverse floaters and secured borrowings.
**	Inverse floating rate security for which the stated interest rate represents the rate in effect at March 31, 2007.
#	Aggregate cost for federal income tax purposes is substantially the same.
	See pages 10 and 11 for definitions of ratings.

	Abbreviations used in this schedule:
	ACA - American Capital Assurance
	AMBAC - Ambac Assurance Corporation
	COP - Certificate of Participation
	DFA - Development Finance Agency
	EFA - Educational Facilities Authority
	FGIC - Financial Guaranty Insurance Company
	FHLMC - Federal Home Loan Mortgage Corporation
	FNMA - Federal National Mortgage Association
	FSA - Financial Security Assurance
	GNMA - Government National Mortgage Association
	GO - General Obligation
	GTD - Guaranteed
	HEFA - Health & Educational Facilities Authority
	IDA - Industrial Development Authority
	INDLC - Industrial Indemnity Company
	LOC - Letter of Credit
	MBIA - Municipal Bond Investors Assurance Corporation
	MFH - Multi-Family Housing
	PSF - Permanent School Fund
	RIBS - Residual Interest Bonds
	RITES - Residual Interest Tax-Exempt Securities
	Radian - Radian Assets Assurance
	SPA - Standby Bond Purchase Agreement
	USD - Unified School District
	XLCA - XL Capital Assurance Inc.

See Notes to Schedule of Investments

Western Asset Intermediate Muni Fund, Inc.

Schedule of Investments (unaudited) (continued)

March 31, 2007

Summary of Investments by Industry*

Pre-Refunded	19.1	%
General Obligation	16.7
Hospitals	10.5
Utilities	10.0
Transportation	9.4
Escrowed to Maturity	8.0
Education	7.1
Pollution Control	4.3
Miscellaneous	2.7
Water and Sewer	2.6
Life Care Systems	2.6
Tax Allocation	2.2
Industrial Development	1.4
Tobacco	1.1
Public Facilities	1.0
Housing: Multi-Family	0.7
Solid Waste	0.6

	100.0	%

*As a percentage of total investments. Please note that Fund holdings are as of March 31, 2007 and are subject to change.

See Notes to Schedule of Investments.

Bond Ratings (unaudited)

The definitions of the applicable rating symbols are set forth below:

Standard & Poor’s Ratings Service (“Standard & Poor’s”)—Ratings from “AA” to “CCC” may be modified by the addition of a plus (+) or minus (–) sign to show relative standings within the major rating categories.

AAA	—	Bonds rated “AAA” have the highest rating assigned by Standard & Poor’s. Capacity to pay interest and repay principal is extremely strong.
AA	—	Bonds rated “AA” have a very strong capacity to pay interest and repay principal and differ from the highest rated issues only in a small degree.
A	—	Bonds rated “A” have a strong capacity to pay interest and repay principal although they are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher rated categories.
BBB	—	Bonds rated “BBB” are regarded as having an adequate capacity to pay interest and repay principal. Whereas they normally exhibit adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for bonds in this category than in higher rated categories.
BB, B,
CCC,
CC and C	—	Bonds rated “BB”, “B”, “CCC”, “CC” and “C” are regarded, on balance, as predominantly speculative with respect to capacity to pay interest and repay principal in accordance with the terms of the obligation. “BB” represents the lowest degree of speculation and “C” the highest degree of speculation. While such bonds will likely have some quality and protective characteristics, these are outweighed by large uncertainties or major risk exposures to adverse conditions.
D	—	Bonds rated “D” are in default and payment of interest and/or repayment of principal is in arrears.

Moody’s Investors Service (“Moody’s”)—Numerical modifiers 1, 2 and 3 may be applied to each generic rating from “Aa” to “Caa,” where 1 is the highest and 3 the lowest ranking within its generic category.

Aaa	—	Bonds rated “Aaa” are judged to be of the best quality. They carry the smallest degree of investment risk and are generally referred to as “gilt edge.” Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issues.
Aa	—	Bonds rated “Aa” are judged to be of high quality by all standards. Together with the “Aaa” group they comprise what are generally known as high grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in “Aaa” securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than in “Aaa” securities.
A	—	Bonds rated “A” possess many favorable investment attributes and are to be considered as upper medium grade obligations. Factors giving security to principal and interest are considered adequate but elements may be present which suggest a susceptibility to impairment some time in the future.
Baa	—	Bonds rated “Baa” are considered as medium grade obligations, i.e., they are neither highly protected nor poorly secured. Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well.
Ba	—	Bonds rated “Ba” are judged to have speculative elements; their future cannot be considered as well assured. Often the protection of interest and principal payments may be very moderate and therefore

Bond Ratings (unaudited)(continued)

		not well safeguarded during both good and bad times over the future. Uncertainty of position characterizes bonds in this class.
B	—	Bonds rated “B” generally lack characteristics of desirable investments. Assurance of interest and principal payments or of maintenance of other terms of the contract over any long period of time may be small.
Caa	—	Bonds rated “Caa” are of poor standing. These may be in default, or present elements of danger may exist with respect to principal or interest.
Ca	—	Bonds rated “Ca” represent obligations which are speculative in a high degree. Such issues are often in default or have other marked short-comings.
C	—	Bonds rated “C” are the lowest class of bonds and issues so rated can be regarded as having extremely poor prospects of ever attaining any real investment standing.
Fitch Ratings Service (“Fitch”)—Ratings from “AA” to “CCC” may be modified by the addition of a plus (+) or minus (–) sign to show relative standings within the major rating categories.
AAA	—	Bonds rated “AAA” have the highest rating assigned by Fitch. Capacity to pay interest and repay principal is extremely strong.
AA	—	Bonds rated “AA” have a very strong capacity to pay interest and repay principal and differ from the highest rated issues only in a small degree.
A	—	Bonds rated “A” have a strong capacity to pay interest and repay principal although they are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher rated categories.
BBB	—	Bonds rated “BBB” are regarded as having an adequate capacity to pay interest and repay principal. Whereas they normally exhibit adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for bonds in this category than in higher rated categories.
BB, B,
CCC
and CC	—	Bonds rated “BB”, “B”, “CCC” and “CC” are regarded, on balance, as predominantly speculative with respect to capacity to pay interest and repay principal in accordance with the terms of the obligation. “BB” represents a lower degree of speculation than “B”, and “CC” the highest degree of speculation. While such bonds will likely have some quality and protective characteristics, these are outweighed by large uncertainties or major risk exposures to adverse conditions.

Short-Term Security Ratings (unaudited)

SP-1	—	Standard & Poor’s highest rating indicating very strong or strong capacity to pay principal and interest; those issues determined to possess overwhelming safety characteristics are denoted with a plus (+) sign.
A-1	—	Standard & Poor’s highest commercial paper and variable-rate demand obligation (VRDO) rating indicating that the degree of safety regarding timely payment is either overwhelming or very strong; those issues determined to possess overwhelming safety characteristics are denoted with a plus (+) sign.
VMIG 1	—	Moody’s highest rating for issues having a demand feature— VRDO.
MIG1	—	Moody’s highest rating for short-term municipal obligations.
P-1	—	Moody’s highest rating for commercial paper and for VRDO prior to the advent of the VMIG 1 rating.
F1	—	Fitch’s highest rating indicating the strongest capacity for timely payment of financial commitments; those issues determined to possess overwhelming strong credit feature are denoted with a plus (+) sign.
NR	—	Indicates that the bond is not rated by Standard & Poor’s, Moody’s or Fitch Ratings Service.

Notes to Schedule of Investments (unaudited)

1. Organization and Significant Accounting Policies

Western Asset Intermediate Muni Fund Inc. (the “Fund”) was incorporated in Maryland and is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”).

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

(a) Investment Valuation. Securities are valued at the mean between the bid and asked prices provided by an independent pricing service that are based on transactions in municipal obligations, quotations from municipal bond dealers, market transactions in comparable securities and various other relationships between securities. Securities for which market quotations are not readily available or are determined not to reflect fair value, will be valued in good faith by or under the direction of the Fund’s Board of Directors. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates market value.

(b) Financial Futures Contracts. The Fund may enter into financial futures contracts typically to hedge a portion of the portfolio. Upon entering into a financial futures contract, the Fund is required to deposit cash or securities as initial margin. Additional securities are also segregated up to the current market value of the financial futures contracts. Subsequent payments, known as variation margin, are made or received by the Fund each day, depending on the daily fluctuation in the value of the underlying financial instruments. The Fund recognizes an unrealized gain or loss equal to the daily variation margin. When the financial futures contracts are closed, a realized gain or loss is recognized equal to the difference between the proceeds from (or cost of) the closing transactions and the Fund’s basis in the contracts.

The risks associated with entering into financial futures contracts include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying instruments. In addition, investing in financial futures contracts involves the risk that the Fund could lose more than the original margin deposit and subsequent payments required for a futures transaction. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

(c) Inverse Floaters. The Fund may participate either in structuring an inverse floater or purchasing an inverse floater in the secondary market. An inverse floater generally has a floating or variable rate of interest that moves in the opposite direction of market interest rates. So, when short term interest rates move in an upward direction, the interest rate paid on the inverse floater decreases, and vice versa when market interest rates decrease. Inverse floaters also generally respond more rapidly to market interest rate changes than fixed rate securities. Inverse floaters are subject to interest rate and leveraging risks.

When structuring an inverse floater, the Fund will transfer to a trust fixed-rate tax-exempt municipal bonds purchased by the Fund. The trust then typically issues two traunches of variable rate securities that are collateralized by the cash flows of the fixed-rate tax-exempt municipal bonds. The two traunches are known as an inverse floater and a variable rate demand obligation (“VRDO”). The VRDO pays interest based on a floating rate set by a remarketing agent at predetermined intervals. The inverse floater, also known as a residual interest tax-exempt security (a “RITES”), is transferred to the Fund, which receives interest based on the remaining cash flow of the trust, after payment of interest on the VRDO and various expenses of the trust. When structuring an inverse floater, the Fund would also be required to retain the municipal bond on its balance sheet and recognize a liability for the VRDO traunch of the trust, along with the periodic interest expense associated with the VRDO. Both the municipal bond and the VRDO are marked to market when the Fund determines its net asset value.

When the Fund purchases an inverse floater in the secondary market, it is required to mark the inverse floater to market when determining net asset value. Interest income is accrued as earned and unrealized gains or losses are recognized when marked to market.

As of March 31, 2007 the Fund held $9,381,257 of municipal bonds that represent participation in three trusts which issued $4,355,000 of secured borrowings. Also, as of March 31, 2007, the Fund held an inverse floater that was acquired in the secondary market.

(d) Security Transactions. Security transactions are accounted for on a trade date basis.

Notes to Schedule of Investments (unaudited) (continued)

2. Investments

At March 31, 2007, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

Gross unrealized appreciation	$	6,579,216
Gross unrealized depreciation	(751,546		)
Net unrealized appreciation	$	5,827,670

At March 31, 2007, the Fund had the following open futures contracts:

	Number of Contracts	Expiration Date	Basis Value		Market Value		Unrealized Gain
Contracts to Sell:
U.S. Treasury 10 Year Notes	165	6/07	$	17,951,333	$	17,840,625	$	110,708

ITEM 2. CONTROLS AND PROCEDURES.

(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

ITEM 3. EXHIBITS.

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.

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.

Western Asset Intermediate Muni Fund Inc.

By	/s/ R. Jay Gerken
R. Jay Gerken
Chief Executive Officer


Date: May 30, 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/ R. Jay Gerken
R. Jay Gerken
Chief Executive Officer

Date: May 30, 2007


By	/s/ Kaprel Ozsolak
Kaprel Ozsolak
Chief Financial Officer

Date: May 30, 2007