Edgar Filing: MORGAN STANLEY QUALITY MUNICIPAL INCOME TRUST

N-CSRS

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-06591

Morgan Stanley Quality Municipal Income Trust

(Exact name of registrant as specified in charter)


522 Fifth Avenue, New York, New York		10036
(Address of principal executive offices)		(Zip code)

Randy Takian
522 Fifth Avenue, New York, New York 10036
(Name and address of agent for service)

Registrant’s telephone number, including area code: 212-296-6990

Date of fiscal year end: October 31, 2009

Date of reporting period: April 30, 2009

Item 1 – Report to Shareholders



INVESTMENT MANAGEMENT

Welcome, Shareholder:

In this report, you’ll learn about how your investment in Morgan Stanley Quality Municipal Income Trust performed during the semiannual period. We will provide an overview of the market conditions, and discuss some of the factors that affected performance during the reporting period. In addition, this report includes the Trust’s financial statements and a list of Trust investments.

Market forecasts provided in this report may not necessarily come to pass. There is no assurance that the Trust will achieve its investment objective. The Trust is subject to market risk, which is the possibility that market values of securities owned by the Trust will decline and, therefore, the value of the Trust’s shares may be less than what you paid for them. Accordingly, you can lose money investing in this Trust.

Income earned by certain securities in the portfolio may be subject to the federal alternative minimum tax (AMT).

Fund Report

For the six months ended April 30, 2009

Market Conditions

Although economic indicators remained weak at the end of the reporting period, most appeared to be showing signs of a possible bottom. First quarter 2009 gross domestic product declined 6.1 percent, which was marginally better than the fourth quarter 2008 decline of 6.3 percent. Overall, we believe broad economic stimulus, lower inventories, and easy capital conditions in both the consumer and business segments point to the potential for an upturn in the economy in the second half of 2009.

The municipal market posted its best year-to-date return in 2009 since 1995. Furthermore, it has done so with less volatility than has been seen in the taxable market. Yield spreads have tightened toward their historic averages, although spreads at the longer end of the municipal yield curve remain well above these averages. For the overall period, high-grade municipal bonds outpaced high-yield municipal issues although the high-yield sector did outperform in the latter months as investor risk appetite returned. In terms of issuance, year-to-date 2009 levels are almost half that of the same period last year, despite a pick-up in issuance over the third and fourth quarters of 2008.

Performance Analysis

For the six-month period ended April 30, 2009, the net asset value (NAV) of Morgan Stanley Quality Municipal Income Trust (IQI) increased from $11.12 to $11.53 per share. Based on this change plus reinvestment of tax-free dividends totaling $0.37875 per share, the Trust’s total NAV return was 7.82 percent. IQI’s value on the New York Stock Exchange (NYSE) moved from $9.21 to $10.73 per share during the same period. Based on this change plus reinvestment of dividends, the Trust’s total market return was 21.14 percent. IQI’s NYSE market price was at a 6.94 percent discount to its NAV. Past performance is no guarantee of future results.

Monthly dividends for the second quarter of 2009, declared in April, increased from $0.0625 to $0.06625 per share. The dividend reflects the current level of the Trust’s net investment income. IQI’s level of undistributed net investment income was $0.124 per share on April 30, 2009 versus $0.058 per share six months earlier.¹

The portfolio maintained an overall focus on higher-quality municipal securities throughout the period. This positioning enhanced returns as risk aversion and widening credit spreads led the lower-quality segment of the market to underperform. Overweight allocations to the high-quality essential services sectors were particularly beneficial.

The longer-dated municipal bonds held in the portfolio were the primary detractors from the Trust’s performance during the period, as the steepening of the municipal yield curve led to the relative outperformance of shorter-dated bonds. Additionally, a rally in the Treasury market during the period resulted in the underperformance of the hedges we used to offset the interest rate risk imposed by holdings in longer-dated municipal issues.

The Trust’s procedure for reinvesting all dividends and distributions in common shares is through purchases in the open market. This method helps

support the market value of the Trust’s shares. In addition, we would like to remind you that the Trustees have approved a share repurchase program whereby the Trust may, when appropriate, purchase shares in the open market or in privately negotiated transactions at a price not above market value or net asset value, whichever is lower at the time of purchase.

The Trust may also take action to reduce or eliminate the amount of Auction Rate Preferred Shares (ARPS) outstanding.

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Investment return, net asset value and common share market price will fluctuate and Trust shares, when sold, may be worth more or less than their original cost.

There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Trust in the future.

¹ Income earned by certain securities in the portfolio may be subject to the federal alternative minimum tax (AMT).


TOP FIVE SECTORS as of 04/30/09
Water / Sewer	15	.0%
General Obligation	13	.0
Hospital	12	.2
Transportation	10	.0
Airport	8	.7


LONG-TERM CREDIT ANALYSIS as of 04/30/09
Aaa/AAA	26	.5%
Aa/AA	44	.3
A/A	14	.3
Baa/BBB	12	.2
Ba/BB or Less	1	.1
Non-Rated	1	.6


SUMMARY OF INVESTMENTS BY STATE CLASSIFICATION as of 04/30/09
California	27	.7	%
New York	24	.0
Texas	19	.3
New Jersey	9	.1
Florida	8	.4
Hawaii	7	.1
Indiana	6	.5
Washington	6	.3
Arizona	6	.0
South Carolina	5	.8
Ohio	5	.8
Illinois	5	.1
Georgia	4	.6
Nevada	4	.5
Michigan	4	.2
Colorado	3	.9
Maryland	2	.7
Kentucky	1	.9
Connecticut	1	.8
District of Columbia	1	.7
North Carolina	1	.7
Virginia	1	.4
Idaho	1	.3
New Mexico	1	.1
Montana	1	.0
Tennessee	1	.0
Kansas	0	.9
Pennsylvania	0	.8
Alaska	0	.8
North Dakota	0	.7
Minnesota	0	.7
Massachusetts	0	.6
Vermont	0	.6
Louisiana	0	.6
Misssouri	0	.4
Oklahoma	0	.4
Oregon	0	.3
New Hampshire	0	.2
Delaware	0	.2

Total Long-Term Investments+	171	.1
Short-Term Investment	3	.5
Liability for Floating Rate Note and Dealer Trusts Obligations	(20	.5	)
Other Assets in Excess of Liabilities	2	.9
Preferred Shares of Beneficial Interest	(57	.0	)

Net Assets Applicable to Common Shareholders	100	.0	%

+ Does not include open long/short futures contracts with an underlying face amount of $49,001,938 with total unrealized appreciation of $598,582.

Subject to change daily. Provided for informational purposes only and should not be deemed as a recommendation to buy or sell the securities mentioned or securities in the sectors shown above. Top five sectors are as a percentage of total investments. Long-term credit analysis are as a percentage of long-term investments. Summary of investments by state classification are as a percentage of net assets applicable to common shareholders. Securities are classified by sectors that represent broad groupings of related industries. Morgan Stanley is a full-service securities firm engaged in securities trading and brokerage activities, investment banking, research and analysis, financing and financial advisory services. Rating allocations based upon ratings as issued by Standard and Poor’s and Moody’s, respectively.

For More Information About Portfolio Holdings

Each Morgan Stanley trust provides a complete schedule of portfolio holdings in its semiannual and annual reports within 60 days of the end of the trust’s second and fourth fiscal quarters. The semiannual reports and the annual reports are filed electronically with the Securities and Exchange Commission (SEC) on Form N-CSRS and Form N-CSR, respectively. Morgan Stanley also delivers the semiannual and annual reports to trust shareholders and makes these reports available on its public web site, www.morganstanley.com. Each Morgan Stanley trust also files a complete schedule of portfolio holdings with the SEC for the trust’s first and third fiscal quarters on Form N-Q. Morgan Stanley does not deliver the reports for the first and third fiscal quarters to shareholders, nor are the reports posted to the Morgan Stanley public web site. You may, however, obtain the Form N-Q filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC’s web site, http://www.sec.gov. You may also review and copy them at the SEC’s public reference room in Washington, DC. Information on the operation of the SEC’s public reference room may be obtained by calling the SEC at (800) SEC-0330. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC’s e-mail address (publicinfo@sec.gov) or by writing the public reference section of the SEC, Washington, DC 20549-0102.

Morgan Stanley Quality Municipal Income Trust

Portfolio of Investments - April 30, 2009 (unaudited)


PRINCIPAL
AMOUNT IN			COUPON				MATURITY
THOUSANDS			RATE				DATE		VALUE
		Tax-Exempt Municipal Bonds (171.1%)
		Alaska (0.8%)
$	4,000	Northern Tobacco Securitization Corporation, Asset Backed Ser 2006 A		5	.00	%	06/01/46		$	2,094,640

		Arizona (6.0%)
	2,000	Arizona Transportation Board, Highway Refg Ser 2002 A		5	.25		07/01/19			2,167,900
	3,000	Phoenix Civic Improvement Corporation, Airport Ser 2002 B (AMT) (FGIC Insd)		5	.25		07/01/32			2,665,230
	3,800	Phoenix Civic Improvement Corporation, Jr Lien Water Ser 2002 (FGIC Insd)		5	.00		07/01/26			3,809,652
	6,000	Salt River Project Agricultural Improvement & Power District, 2002 Ser B (a)		5	.00		01/01/31			6,150,557
	2,000	Surprise Municipal Property Corporation, Ser 2007		4	.90		04/01/32			1,490,880

										16,284,219

		California (27.7%)
	5,000	California Economic Recovery, Ser 2004 A		5	.00		07/01/16			5,205,100
	2,000	California Health Facilities Financing Authority, Cedars-Sinai Medical Center Ser 2005		5	.00		11/15/34			1,728,580
	2,000	California Health Facilities Financing Authority, Kaiser Permanente Ser 2006 A		5	.25		04/01/39			1,747,640
	5,000	California Infrastructure & Economic Development Bank, Bay Area Toll Bridges First Lien Ser 2003 A (a)		5	.00		01/01/28	(b)		5,544,476
	3,000	California Infrastructure & Economic Development Bank, The Scripps Research Institute Ser 2005 A		5	.00		07/01/29			3,015,600
	6,000	California Pollution Control Financing Authority, Keller Canyon Landfill Co/Browning-Ferris Industries Inc Ser 1992 (AMT)		6	.875		11/01/27			5,999,280
	4,000	California Statewide Communities Development, Baptist University Ser 2007 A		5	.40		11/01/27			2,623,000
	5,000	California Statewide Communities Development, John Muir Health Ser 2006 A		5	.00		08/15/32			4,376,500
	5,000	California, Various Purpose Dtd 05/01/03		5	.25		02/01/19			5,184,850
	3,335	California, Various Purpose Dtd 11/01/06		4	.50		10/01/36			2,755,110
	2,705	Chawanakee Unified School District Ser 2009 A (COPs)		6	.25(e)		05/01/39			2,703,052
	6,000	Golden State Tobacco Securitization Corporation, Enhanced Asset Backed Ser 2005 A (AMBAC Insd)		5	.00		06/01/29			5,279,220
	2,400	Golden State Tobacco Securitization Corporation, Enhanced Asset Backed Ser 2007 A		5	.75		06/01/47			1,381,920
	7,650	Golden State Tobacco Securitization Corporation, Enhanced Asset Backed Ser 2007 A-1		5	.125		06/01/47			3,945,182
	4,000	Los Angeles, Ser 2004 A (NATL-RE Insd)		5	.00		09/01/24			4,141,640
	1,000	Port of Oakland, Ser 2002 L (AMT) (FGIC Insd)		5	.00		11/01/21			906,040
	4,000	Port of Oakland, Ser 2002 L (AMT) (FGIC Insd)		5	.00		11/01/32			3,172,920

See Notes to Financial Statements

Morgan Stanley Quality Municipal Income Trust

Portfolio of Investments - April 30, 2009 (unaudited) continued


PRINCIPAL
AMOUNT IN			COUPON				MATURITY
THOUSANDS			RATE				DATE		VALUE
$	1,000	San Diego County, Burnham Institute for Medical Research Ser 2006 (COPs)		5	.00	%	09/01/34		$	690,090
	3,720	San Diego County Water Authority, Ser 2002 A (COPs) (NATL-RE Insd)		5	.00		05/01/27			3,760,288
	960	San Francisco City & County, Laguna Honda Hospital Refg Ser 2008-R3 (AGC Insd) (a)		5	.00		06/15/28			968,285
	16,000	Silicon Valley Tobacco Securitization Authority Tobacco Settlement, Santa Clara Tobacco Securitization Corp Ser 2007 (f)		0	.00		06/01/36			1,024,160
	5,000	Tobacco Securitization Authority of Northern California, Sacramento County Tobacco Securitization Corporation Ser 2006 A-1		5	.00		06/01/37			2,848,950
	1,350	Twin Rivers Unified School District, Ser 2009 (BANs) (f)		0	.00		04/01/14			1,044,697
	500	University of California, 2009 Ser O		5	.25		05/15/39			501,535
	2,760	University of California, Ser 2007-J (FSA Insd) (a)		4	.50		05/15/31			2,481,438
	2,240	University of California, Ser 2007-J (FSA Insd) (a)		4	.50		05/15/35			1,960,386

										74,989,939

		Colorado (3.9%)
	1,750	Boulder County, University Corp for Atmospheric Research Ser 2002 (NATL-RE Insd)		5	.375		09/01/18			1,850,118
	1,750	Boulder County, University Corp for Atmospheric Research Ser 2002 (NATL-RE Insd)		5	.375		09/01/21			1,837,745
	2,000	Colorado Educational & Cultural Facilities Authority, Peak to Peak Charter School Refg & Impr Ser 2004 (XLCA Insd)		5	.25		08/15/34			1,756,460
	2,000	Colorado Health Facilities Authority, Adventist/Sunbelt Ser 2006 D		5	.25		11/15/35			1,782,600
	1,820	Denver City & County Airport System, Ser 2006B (AMT) (NATL-RE FGIC Insd)		5	.00		11/15/12			1,876,365
	1,590	Denver Convention Center Hotel Authority, Refg Ser 2006 (XLCA Insd)		5	.00		12/01/30			1,118,978
	265	Public Authority for Colorado Energy, Natural Gas Ser 2008		6	.25		11/15/28			222,393

										10,444,659

		Connecticut (1.8%)
	5,000	Connecticut Housing Finance Authority, SubSer A-2 (AMT)		5	.15		05/15/38			4,860,450

		Delaware (0.2%)
	1,000	New Castle County, Newark Charter School Inc Ser 2006		5	.00		09/01/36			605,970

		District of Columbia (1.7%)
	6,000	District of Columbia Ballpark, Ser 2006 B-1 (FGIC Insd)		5	.00		02/01/31			4,646,700

		Florida (8.4%)
	2,000	Broward County School Board, Ser 2001 A (COPs) (FSA Insd)		5	.00		07/01/26			1,983,940
	75	Highlands County Health Facilities Authority, Adventist Health/Sunbelt Ser 2006 C		5	.25		11/15/16	(b)		88,559
	2,925	Highlands County Health Facilities Authority, Adventist Health/Sunbelt Ser 2006 C		5	.25		11/15/36			2,553,174
	3,300	Jacksonville Electric Authority, St Johns Power Park Refg Issue 2 Ser 17		5	.00		10/01/18			3,366,099

See Notes to Financial Statements

Morgan Stanley Quality Municipal Income Trust

Portfolio of Investments - April 30, 2009 (unaudited) continued


PRINCIPAL
AMOUNT IN			COUPON				MATURITY
THOUSANDS			RATE				DATE	VALUE
$	1,500	Lee County Industrial Development Authority, Shell Point Village/ The Alliance Community for Retirement Living Inc, Ser 2006		5	.125	%	11/15/36	$	906,720
	2,000	Miami-Dade County Building Better Communities Program, Ser 2008B-1		6	.00		07/01/38		2,079,840
	1,200	Palm Beach County Solid Waste Authority, Ser 2009 (BHAC Insd)		5	.50		10/01/23		1,292,676
	12,000	South Miami Health Facilities Authority, Baptist Health South Florida Ser 2007		5	.00		08/15/42		10,511,040

									22,782,048

		Georgia (4.6%)
	3,000	Atlanta, Airport Ser 2004 J (FSA Insd) (c)		5	.00		01/01/34		2,982,960
	6,000	Georgia State Road & Tollway Authority, Ser 2004		5	.00		10/01/22		6,354,060
	3,000	Georgia State Road & Tollway Authority, Ser 2004		5	.00		10/01/23		3,162,330

									12,499,350

		Hawaii (7.1%)
	8,000	Hawaii, 1992 Ser BZ		6	.00		10/01/11		8,894,640
	10,000	Honolulu City & County, Ser 2003 A (NATL-RE Insd) (a)		5	.25		03/01/26		10,292,200

									19,186,840

		Idaho (1.3%)
	50	Idaho Housing Agency, 1992 Ser E (AMT)		6	.75		07/01/12		50,099
	760	Idaho Housing & Finance Association, 2000 Ser E (AMT)		6	.00		01/01/32		773,163
	2,600	Idaho Housing & Finance Association, 2008 Ser A		5	.25		07/15/23		2,819,778

									3,643,040

		Illinois (5.1%)
	4,000	Chicago O’Hare Int’l Airport, Third Lien Ser 2003 B-2 (AMT) (FSA Insd)		5	.75		01/01/23		4,066,640
	830	Illinois Finance Authority, Northwestern Memorial Hospital Ser 2009B		5	.00		08/15/16		894,790
	645	Illinois Finance Authority, Rush University Medical Center Obligated Group Ser 2009A		7	.25		11/01/38		674,709
	6,000	Illinois, First Ser 2002 (NATL-RE Insd)		5	.375		07/01/20		6,259,320
	2,000	Schaumburg, Ser 2004 B (FGIC Insd)		5	.25		12/01/34		2,035,720

									13,931,179

		Indiana (6.5%)
	10,000	Indiana Bond Bank, Revolving Fund Ser 2001 A		5	.00		02/01/23		10,418,200
	6,000	Indiana Health & Educational Facility Financing Authority, Clarian Health Ser 2006 A		5	.25		02/15/40		4,845,240
	1,400	Marion County Convention & Recreational Facilities Authority, Refg Ser 2003 A (AMBAC Insd)		5	.00		06/01/21		1,412,754
	820	Rockport Indiana Michigan Power Company, Refg Ser 2009 B		6	.25		06/01/25		841,443

									17,517,637

See Notes to Financial Statements

Morgan Stanley Quality Municipal Income Trust

Portfolio of Investments - April 30, 2009 (unaudited) continued


PRINCIPAL
AMOUNT IN			COUPON				MATURITY
THOUSANDS			RATE				DATE	VALUE
		Kansas (0.9%)
$	3,000	University of Kansas Hospital Authority, KU Health Ser 2002		4	.50	%	09/01/32	$	2,534,940

		Kentucky (1.9)
	5,000	Louisville & Jefferson County Metropolitan Sewer District, Ser 1999 A (FGIC Insd)		5	.75		05/15/33		5,056,250

		Louisiana (0.6%)
	1,500	Louisiana Offshore Terminal Authority, Deepwater Port Ser 2007B-2		4	.30		10/01/37		1,505,970

		Maryland (2.7%)
	2,000	Baltimore County, Oak Crest Village Ser 2007 A		5	.00		01/01/37		1,463,760
	3,000	Maryland Health & Higher Educational Facilities Authority, King Farm Presbyterian Community 2006 Ser B		5	.00		01/01/17		2,328,930
	1,700	Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical Ser 2006 A		5	.00		07/01/41		1,393,762
	2,000	Northeast Maryland Waste Disposal Authority, Montgomery County Ser 2003 (AMT) (AMBAC Insd)		5	.50		04/01/16		2,051,040

									7,237,492

		Massachusetts (0.6%)
	1,600	Massachusetts Health and Educational Facilities Authority, Boston College 2008 Ser M-2		5	.50		06/01/30		1,776,864

		Michigan (4.2%)
	2,715	Michigan Hospital Finance Authority, Henry Ford Health Refg Ser 2006 A		5	.25		11/15/46		2,048,115
	5,000	Michigan Strategic Fund, Detroit Edison Co Ser 2001 C (AMT)		5	.65		09/01/29		4,497,750
	3,000	Wayne County, Detroit Metropolitan Wayne County Airport Refg Ser 2002 D (AMT) (FGIC Insd)		5	.50		12/01/17		3,005,430
	1,855	Wayne State University, Refg Ser 2008 (FSA Insd)		5	.00		11/15/25		1,942,556

									11,493,851

		Minnesota (0.7%)
	2,000	Western Minnesota Municipal Power Agency, 2003 Ser A (NATL-RE Insd)		5	.00		01/01/30		1,954,500

		Missouri (0.4%)
	1,500	Missouri Health & Educational Facilities Authority, Lutheran Senior Services Ser 2005 A		5	.375		02/01/35		1,079,205
	150	Missouri Housing Development Commission, Homeownership Ser 2000 B-1 (AMT)		6	.25		03/01/31		154,827

									1,234,032

		Montana (1.0%)
	2,825	Montana Board of Housing, 2000 Ser B (AMT)		6	.00		12/01/29		2,851,612

See Notes to Financial Statements

Morgan Stanley Quality Municipal Income Trust

Portfolio of Investments - April 30, 2009 (unaudited) continued


PRINCIPAL
AMOUNT IN			COUPON				MATURITY
THOUSANDS			RATE				DATE	VALUE
		Nevada (4.5%)
$	2,000	Clark County, Airport SubLien Ser 2004 A-1 (AMT) (FGIC Insd)		5	.50	%	07/01/20	$	1,976,040
	1,000	Clark County, Jet Aviation Fuel Tax Ser 2003 C (AMT) (AMBAC Insd)		5	.375		07/01/19		989,510
	1,100	Clark County, Jet Aviation Fuel Tax Ser 2003 C (AMT) (AMBAC Insd)		5	.375		07/01/20		1,076,438
	2,000	Clark County, Jet Aviation Fuel Tax Ser 2003 C (AMT) (AMBAC Insd)		5	.375		07/01/22		1,923,180
	640	Las Vegas Redevelopment Agency, Tax Increment Ser 2009A		6	.25		06/15/16		655,814
	5,345	Las Vegas Valley Water District, Water Impr Refg Ser 2003 A (FGIC Insd)		5	.25		06/01/20		5,495,248

									12,116,230

		New Hampshire (0.2%)
	655	New Hampshire Business Finance Authority, United Illuminating Company Ser 2009 (AMT)		7	.125		07/01/27		659,028

		New Jersey (9.1%)
	2,000	New Jersey Economic Development Authority, Cigarette Tax Ser 2004		5	.75		06/15/29		1,483,100
	1,555	New Jersey Housing Mortgage Finance Authority, Home Buyer Ser 2000 CC (AMT) (NATL-RE Insd)		5	.875		10/01/31		1,560,458
	5,000	New Jersey Transportation Trust Fund Authority, 1999 Ser A		5	.75		06/15/20		5,488,700
	1,500	New Jersey Turnpike Authority, Ser 2003 A (FGIC Insd) (c)		5	.00		01/01/27		1,516,755
	10,000	Passaic Valley Sewerage Commissioners, Ser F (FGIC Insd)		5	.00		12/01/20		9,148,800
	5,000	Tobacco Settlement Financing Corporation, Ser 2007-1 A		4	.625		06/01/26		3,283,300
	6,000	Tobacco Settlement Financing Corporation, Ser 2007-1 B (f)		0	.00		06/01/41		216,900
	2,000	University of Medicine & Dentistry, Ser 2004 (COPs) (NATL-RE Insd)		5	.25		06/15/23		1,943,180

									24,641,193

		New Mexico (1.1%)
	3,000	Rio Rancho, Water & Wastewater Refg Ser 1999 (AMBAC Insd)		5	.25		05/15/19		3,007,410

		New York (24.0%)
	1,935	New York City Trust for Cultural Resources, Museum of Modern Art Refg Ser 2008 1-A (a)		5	.00		04/01/26		1,990,850
	2,815	New York City Trust for Cultural Resources, Museum of Modern Art Refg Ser 2008 1-A (a)		5	.00		04/01/27		2,896,250
	2,380	New York City, 2009 Subser A-1 (a)		5	.25		08/15/27		2,437,065
	2,380	New York City, 2009 Subser A-1 (a)		5	.25		08/15/28		2,437,065
	10,000	Metropolitan Transportation Authority, Transportation Refg Ser 2002 A (FGIC Insd)		5	.00		11/15/25		10,077,200
	2,715	Nassau County Tobacco Settlement Corporation, Ser 2006 A-3		5	.125		06/01/46		1,712,513
	3,500	New York City Municipal Water Finance Authority, Ser A-2003		5	.375		06/15/19		3,672,410
	18,000	New York City Municipal Water Finance Authority, 2002 Ser B (a)		5	.00		06/15/26		18,154,200
	10,000	New York City Municipal Water Finance Authority, 2004 Ser A		5	.00		06/15/35		10,032,700
	2,000	Seneca Nation of Indians, Ser 2007 A (d)		5	.00		12/01/23		1,285,700

See Notes to Financial Statements

Morgan Stanley Quality Municipal Income Trust

Portfolio of Investments - April 30, 2009 (unaudited) continued


PRINCIPAL
AMOUNT IN			COUPON				MATURITY
THOUSANDS			RATE				DATE	VALUE
$	5,000	Tobacco Settlement Financing Corporation, State Contingency Ser 2003 B-1C		5	.50	%	06/01/17	$	5,140,400
	5,000	Triborough Bridge & Tunnel Authority, Refg 2002 E (NATL-RE Insd) (a)		5	.25		11/15/22		5,175,701

									65,012,054

		North Carolina (1.7%)
	4,500	Charlotte, Water & Sewer Ser 2001		5	.125		06/01/26		4,636,350

		North Dakota (0.7%)
	2,750	Ward County, Trinity Ser 2006		5	.125		07/01/29		1,997,077

		Ohio (5.8%)
	5,100	American Municipal Power – Ohio, Inc., Prairie State Energy Campus Ser 2008 A (AGC Insd) (a)		5	.25		02/15/33		5,189,717
	5,370	Cuyahoga County, Cleveland Clinic Ser 2003 A		6	.00		01/01/32		5,454,363
	3,000	Lorain County, Catholic Healthcare Partners Ser 2001 A		5	.625		10/01/17		3,098,010
	2,000	Ohio State University, General Receipts Ser 2002 A		5	.125		12/01/31		2,012,580

									15,754,670

		Oklahoma (0.4%)
	1,500	Oklahoma Development Finance Authority, Great Plains Medical Center Ser 2007		5	.125		12/01/36		1,045,245

		Oregon (0.3%)
	685	Oregon Department of Administrative Services, 2009 Ser A		5	.25		04/01/24		740,238

		Pennsylvania (0.8%)
	4,000	Allegheny County Redevelopment Authority, West Penn Allegheny Health Ser 2007 A		5	.375		11/15/40		2,134,120

		South Carolina (5.8%)
	3,000	Charleston Educational Excellence Financing Corporation, Charleston County School District Ser 2005		5	.25		12/01/29		3,008,130
	70	Lexington County Health Services District, Lexmed Inc, Ser 2007 A		5	.00		11/01/16		71,970
	345	Richland County, Environmental Improvement, International Paper Company Ser 2007 A		4	.60		09/01/12		316,248
	5,000	South Carolina Public Service Authority, Refg Ser 2002 D (FSA Insd)		5	.00		01/01/20		5,288,800
	7,000	South Carolina Public Service Authority, Refg Ser 2003 A (AMBAC Insd) (a)		5	.00		01/01/22		7,080,003

									15,765,151

		Tennessee (1.0%)
	2,000	Sullivan County Health Educational & Housing Facilities Board, Wellmont Health Ser 2006 C		5	.25		09/01/36		1,223,180
	1,620	Tennessee Energy Acquisition Corporation, Ser 2006 A		5	.25		09/01/19		1,415,896

									2,639,076

See Notes to Financial Statements

Morgan Stanley Quality Municipal Income Trust

Portfolio of Investments - April 30, 2009 (unaudited) continued


PRINCIPAL
AMOUNT IN			COUPON				MATURITY
THOUSANDS			RATE				DATE	VALUE
		Texas (19.3%)
$	2,000	Alliance Airport Authority, Federal Express Corp Refg Ser 2006 (AMT)		4	.85	%	04/01/21	$	1,625,960
	10,000	Austin, Water & Wastewater Refg Ser 2001 A & B (FSA Insd) (a)		5	.125		05/15/27		10,091,664
	5,100	Board of Regents of the University of Houston, Refg Ser 2008 (FSA Insd) (a)		5	.00		02/15/33		5,150,235
	6,000	Houston, Airport Sub Lien Ser 2000 A (AMT) (FSA Insd)		5	.875		07/01/17		6,073,500
	5,000	Houston, Airport Sub Lien Ser 2000 A (AMT) (FSA Insd)		5	.625		07/01/30		4,822,850
	5,120	Houston, Combined Utility First Lien Refg 2004 Ser A (NATL-RE FGIC Insd)		5	.25		05/15/23		5,277,389
	8,600	North Texas Tollway Authority, Refg First Tier Ser 2008 D (f)		0	.00		01/01/28		2,904,306
	1,650	North Texas Tollway Authority, Refg Ser 2008 D (AGC Insd) (f)		0	.00		01/01/31		456,357
	13,960	San Antonio Water, Refg Ser 2001 (FGIC Insd)		5	.00		05/15/26		14,048,367
	2,000	Tarrant County Cultural Educational Facilities Finance Corp, Air Force Village II Inc Ser 2007		5	.125		05/15/37		1,354,320
	530	Texas Municipal Gas Acquisition & Supply Corporation, Sr Lien Ser 2008 D		6	.25		12/15/26		456,489

									52,261,437

		Vermont (0.6%)
	2,500	Vermont Economic Development Authority, Wake Robin Corp Ser 2006 A		5	.375		05/01/36		1,572,125

		Virginia (1.4%)
	2,000	Fairfax County Economic Development Authority, Goodwin House Inc Ser 2007		5	.125		10/01/42		1,370,600
	1,450	Henrico County Economic Development Authority, Residential Care Facility, Westminster Canterbury-Management Corp Ser 2006		5	.00		10/01/27		1,108,974
	1,750	Henrico County Economic Development Authority, Residential Care Facility, Westminster Canterbury-Management Corp Ser 2006		5	.00		10/01/35		1,222,603

									3,702,177

		Washington (6.3%)
	5,000	Energy Northwest, Columbia Refg Ser 2001 C (NATL-RE Insd)		5	.75		07/01/18		5,367,100
	5,000	Grant County Public Utility District #2, Electric Refg Ser 2001 H (FSA Insd)		5	.375		01/01/18		5,266,700
	4,010	Port of Seattle, Passenger Facility Ser 1998 A (NATL-RE Insd)		5	.00		12/01/23		3,944,637
	2,500	Spokane School District #81 Ser 2005 (NATL-RE Insd) (f)		0	.00(e)		06/01/23		2,634,900

									17,213,337

		Total Tax-Exempt Municipal Bonds (Cost $492,997,602)							464,029,100

See Notes to Financial Statements

Morgan Stanley Quality Municipal Income Trust

Portfolio of Investments - April 30, 2009 (unaudited) continued


NUMBER OF
SHARES (000)					VALUE
			Short-Term Investment (g) (3.5%)
			Investment Company
	9,416		Morgan Stanley Institutional Liquidity Funds – Tax-Exempt Portfolio – Institutional Class (Cost $9,415,722)		$	9,415,722

			Total Investments (Cost $502,413,324)			473,444,822


PRINCIPAL
AMOUNT IN
THOUSANDS


			Floating Rate Note and Dealer Trusts Obligations Related to Securities Held (-20.5%)
$	(55,694	)	Notes with interest rates ranging from 0.53% to 0.97% at April 30, 2009 and contractual maturities of collateral ranging from 01/01/22 to 07/01/36 (See Note 1D) (h) (Cost $(55,694,000))			(55,694,000	)


			Total Net Investments (Cost $446,719,324) (i) (j)	154.1%		417,750,822
			Other Assets in Excess of Liabilities	2.9		7,816,958
			Preferred Shares of Beneficial Interest	(57.0)		(154,504,076	)

			Net Assets Applicable to Common Shareholders	100.0%	$	271,063,704


Note: The categories of investments are shown as a percentage of net assets applicable to common shareholders.


AMT		Alternative Minimum Tax.
BANs		Bond anticipation Notes.
COPs		Certificates of Participation.
PSF		Texas Permanent School Fund Guarantee Program.
(a)		Underlying security related to inverse floaters entered into by the Trust.
(b)		Prerefunded to call date shown.
(c)		A portion of this security has been physically segregated in connection with open futures contracts.
(d)		Resale is restricted to qualified institutional investors.
(e)		Security is a “Step-up” bond where the coupon increases on a predetermined future date.
(f)		Capital appreciation bond.
(g)		See Note 3 to the financial statements regarding Investments in Morgan Stanley Institutional Liquidity Funds - Tax-Exempt Portfolio -- Institutional Class.
(h)		Floating rate note and dealer trusts obligations related to securities held. The interest rates shown reflect the rates in effect at April 30, 2009.
(i)		Securities have been designated as collateral in connection with open futures contracts and inverse floating rate municipal obligations.
(j)		The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is $8,187,567 and the aggregate gross unrealized depreciation is $37,156,069, resulting in net unrealized depreciation of $28,968,502.


Bond Insurance:
AGC		Assured Guaranty Corp.
AMBAC		AMBAC Assurance Corporation.
BHAC		Berkshire Hathaway Assurance Corporation.
FGIC		Financial Guaranty Insurance Company.
FSA		Financial Security Assurance Inc.
NATL-RE		National Public Finance Guarantee Corporation.
XLCA		XL Capital Assurance Inc.

See Notes to Financial Statements

Morgan Stanley Quality Municipal Income Trust

Portfolio of Investments - April 30, 2009 (unaudited) continued

Futures Contracts Open at April 30, 2009:


							UNREALIZED
NUMBER OF			DESCRIPTION, DELIVERY	UNDERLYING FACE			APPRECIATION
CONTRACTS		LONG/SHORT	MONTH AND YEAR	AMOUNT AT VALUE			(DEPRECIATION)
	48	Long	U.S. Treasury Note 2 Year June 2009	$	10,442,250		$	2,893
	52	Long	U.S. Treasury Note 5 Year June 2009		6,091,313			(30,445	)
	82	Short	U.S. Treasury Note 10 Year June 2009		(9,916,875	)		68,950
	184	Short	U.S. Treasury Bond 20 Year June 2009		(22,551,500	)		557,184

			Net Unrealized Appreciation				$	598,582

See Notes to Financial Statements

Morgan Stanley Quality Municipal Income Trust

Financial Statements

Statement of Assets and Liabilities

April 30, 2009 (unaudited)


Assets:
Investments in securities, at value (cost $492,997,602)	$464,029,100
Investments in affiliate, at value (cost $9,415,722)	9,415,722
Receivable for:
Interest	8,031,388
Investments sold	1,868,283
Variation margin	56,906
Dividends from affiliate	3,007
Prepaid expenses and other assets	59,027

Total Assets	483,463,433

Liabilities:
Floating rate note and dealer trusts obligations	55,694,000
Payable for:
Investment purchased	1,910,003
Investment advisory fee	116,697
Administration fee	35,147
Transfer agent fee	1,753
Accrued expenses and other payables	138,053

Total Liabilities	57,895,653

Preferred shares of beneficial interest, (at liquidation value) (1,000,000 shares authorized of non-participating $.01 par value, 3,090 shares outstanding)	154,504,076

Net Assets Applicable to Common Shareholders	$271,063,704

Composition of Net Assets Applicable to Common Shareholders:
Common shares of beneficial interest (unlimited shares authorized of $.01 par value, 23,505,265 shares outstanding)	329,401,143
Net unrealized depreciation	(28,369,920	)
Accumulated undistributed net investment income	2,911,915
Accumulated net realized loss	(32,879,434	)

Net Assets Applicable to Common Shareholders	$271,063,704

Net Asset Value Per Common Share ($271,063,704 divided by 23,505,265 common shares outstanding)	$11.53

Statement of Operations

For the six months ended April 30, 2009 (unaudited)


Net Investment Income:
Income
Interest	$	12,957,486
Dividends from affiliate		12,342

Total Income		12,969,828

Expenses
Investment advisory fee		622,099
Interest and residual trust expenses		506,616
Administration fee		184,326
Auction commission fees		179,109
Professional fees		49,915
Shareholder reports and notices		24,369
Auction agent fees		22,293
Custodian fees		11,013
Listing fees		9,685
Transfer agent fees and expenses		7,407
Trustees’ fees and expenses		6,668
Other		36,993

Total Expenses		1,660,493
Less: expense offset		(14	)
Less: rebate from Morgan Stanley affiliated cash sweep (Note 3)		(3,313	)

Net Expenses		1,657,166

Net Investment Income		11,312,662

Realized and Unrealized Gain (Loss):
Realized Loss on:
Investments		(11,725,779	)
Futures contracts		(14,050,559	)

Net Realized Loss		(25,776,338	)

Change in Unrealized Appreciation/Depreciation on:
Investments		33,340,010
Futures contracts		608,081

Net Change in Unrealized Appreciation/Depreciation		33,948,091

Net Gain		8,171,753

Dividends to preferred shareholders from net investment income		(866,557	)

Net Increase	$	18,617,858

See Notes to Financial Statements

Morgan Stanley Quality Municipal Income Trust

Financial Statements continued

Statements of Changes in Net Assets


	FOR THE SIX			FOR THE YEAR
	MONTHS ENDED			ENDED
	APRIL 30, 2009			OCTOBER 31, 2008
	(unaudited)

Increase (Decrease) in Net Assets:
Operations:
Net investment income	$	11,312,662		$	24,240,982
Net realized loss		(25,776,338	)		(6,785,101	)
Net change in unrealized appreciation/depreciation		33,948,091			(74,263,342	)
Dividends to preferred shareholders from net investment income		(866,557	)		(7,166,693	)

Net Increase (Decrease)		18,617,858			(63,974,154	)
Dividends to common shareholders from net investment income		(8,902,619	)		(16,021,263	)
Decrease from transactions in common shares of beneficial interest		—			(3,609,174	)

Net Increase (Decrease)		9,715,239			(83,604,591	)

Net Assets Applicable to Common Shareholders:
Beginning of period		261,348,465			344,953,056

End of Period (Including accumulated undistributed net investment income of $2,911,915 and $1,368,429, respectively)	$	271,063,704		$	261,348,465

See Notes to Financial Statements

Morgan Stanley Quality Municipal Income Trust

Financial Statements continued

Statement of Cash Flows

For the six months ended April 30, 2009 (unaudited)


Increase (Decrease) in cash:
Cash Flows Provided by Operating Activities:
Net increase in net assets from operations (including preferred shares distributions)	$	18,617,858

Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities:
Net realized loss on investments		11,725,779
Net change in unrealized appreciation/depreciation on investments		(33,340,010	)
Amortization of premium		539,442
Accretion of discount		(292,979	)
Cost of purchases of investments		(16,352,881	)
Proceeds from sales of investments		60,824,769
Net purchases of short-term investments		(5,293,803	)
Decrease in interest receivables and other assets		1,376,230
Decrease in accrued expenses and other payables		(28,891	)

Total Adjustments		19,157,656


Net Cash Provided by Operating Activities		37,775,514

Cash Flows Used for Financing Activities:
Dividends paid		(8,898,543	)
Net repayments of and proceeds from floating rate note and dealer trusts obligations		(29,145,000	)


Net Cash Used for Financing Activities		(38,043,543	)

Net Decrease in Cash		(268,029	)
Cash at the Beginning of the Period		268,029

Cash at the End of the Period	$	—

Supplemental Disclosure of Cash Flow Information
Cash paid during the six months for interest	$	506,616

See Notes to Financial Statements

Morgan Stanley Quality Municipal Income Trust

Notes to Financial Statements - April 30, 2009 (unaudited)

1. Organization and Accounting Policies

Morgan Stanley Quality Municipal Income Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended, as a diversified, closed-end management investment company. The Trust’s investment objective is to provide current income which is exempt from federal income tax. The Trust was organized as a Massachusetts business trust on March 12, 1992 and commenced operations on September 29, 1992.

The following is a summary of significant accounting policies:

A. Valuation of Investments — (1) portfolio securities are valued by an outside independent pricing service approved by the Trustees. The pricing service uses both a computerized grid matrix of tax-exempt securities and evaluations by its staff, in each case based on information concerning market transactions and quotations from dealers which reflect the mean between the last reported bid and asked price. The portfolio securities are thus valued by reference to a combination of transactions and quotations for the same or other securities believed to be comparable in quality, coupon, maturity, type of issue, call provisions, trading characteristics and other features deemed to be relevant. The Trustees believe that timely and reliable market quotations are generally not readily available for purposes of valuing tax-exempt securities and that the valuations supplied by the pricing service are more likely to approximate the fair value of such securities; (2) futures are valued at the latest sale price on the commodities exchange on which they trade unless it is determined that such price does not reflect their market value, in which case they will be valued at their fair value as determined in good faith under procedures established by and under the supervision of the Trustees; (3) interest rate swaps are marked-to-market daily based upon quotations from market makers; (4) investments in open-end mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day; and (5) short-term debt securities having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost, which approximates market value.

B. Accounting for Investments — Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on security transactions are determined by the identified cost method. Discounts are accreted and premiums are amortized over the life of the respective securities and are included in interest income. Interest income is accrued daily.

C. Futures Contracts — A futures contract is an agreement between two parties to buy and sell financial instruments or contracts based on financial indices at a set price on a future date. Upon entering into such a contract, the Trust is required to pledge to the broker cash, U.S. Government securities or other liquid portfolio securities equal to the minimum initial margin requirements of the applicable futures exchange.

Morgan Stanley Quality Municipal Income Trust

Notes to Financial Statements - April 30, 2009 (unaudited) continued

Pursuant to the contract, the Trust agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments known as variation margin are recorded by the Trust as unrealized gains and losses. Upon closing of the contract, the Trust realizes a gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

D. Floating Rate Note and Dealer Trusts Obligations Related to Securities Held —

The Trust enters into transactions in which it transfers to Dealer Trusts (“Dealer Trusts”) fixed rate bonds in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate investments. The Dealer Trusts fund the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Trust to retain residual interest in the bonds. The Trust enters into shortfall agreements with the Dealer Trusts which commit the Trust to pay the Dealer Trusts, in certain circumstances, the difference between the liquidation value of the fixed rate bonds held by the Dealer Trusts and the liquidation value of the floating rate notes held by third parties, as well as any shortfalls in interest cash flows. The residual interests held by the Trust (inverse floating rate investments) include the right of the Trust (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Trust, thereby collapsing the Dealer Trusts. The Trust accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Trust’s investment assets, and the related floating rate notes reflected as Trust liabilities under the caption “floating rate note and dealer trusts obligations” on the Statement of Assets and Liabilities. The Trust records the interest income from the fixed rate bonds under the caption “interest” and records the expenses related to floating rate note and dealer trusts obligations and any administrative expenses of the Dealer Trusts under the caption “interest and residual trust expenses” in the Statement of Operations. The floating rate notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. At April 30, 2009, Trust investments with a value of $88,000,092 are held by the Dealer Trusts and serve as collateral for the $55,694,000 in the floating rate note and dealer trusts obligations outstanding at that date. The range of contractual maturities of the floating rate note and dealer trusts obligations and interest rates in effect at April 30, 2009 are presented in the Portfolio of Investments.

E. Interest Rate Swaps — The Trust may enter into interest rate swaps primarily to preserve a return or spread on a particular investment or portion of its portfolio, as a duration management technique or to protect against any increase in the price of securities the Trust anticipates purchasing at a later date. Interest rate swaps are contractual agreements to exchange periodic interest payment streams calculated on a predetermined notional principal amount. Interest rate swaps generally involve one party paying a fixed interest rate and the other party paying a variable rate. The Trust will usually enter into interest rate swaps

Morgan Stanley Quality Municipal Income Trust

Notes to Financial Statements - April 30, 2009 (unaudited) continued

on a net basis, i.e, the two payment streams are netted out in a cash settlement on the payment date or dates specified in the instrument, with the Trust receiving or paying, as the case may be, only the net amount of the two payments. The Trust accrues the net amount with respect to each interest rate swap on a daily basis. This net amount is recorded within realized gains/losses on swap contracts on the Statement of Operations.

Swap agreements are not entered into or traded on exchanges and there is no central clearing or guaranty function for swaps. Therefore, swaps are subject to the risk of default or non-performance by the counterparty. If there is a default by the counterparty to a swap agreement, the Trust will have contractual remedies pursuant to the agreements related to the transaction. Counterparties are required to pledge collateral daily (based on the valuation of each swap) on behalf of the Trust with a value approximately equal to the amount of any unrealized gain. Reciprocally, when the Trust has an unrealized loss on a swap contract, the Trust has instructed the custodian to pledge cash or liquid securities as collateral with a value approximately equal to the amount of the unrealized loss. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate. For cash collateral received, the Trust pays a monthly fee to the counterparty based on the effective rate for Federal Funds.

F. Federal Income Tax Policy — It is the Trust’s policy to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable and non taxable income to its shareholders. Therefore, no federal income tax provision is required. The Trust files tax returns with the U.S. Internal Revenue Service, New York State and New York City. The Trust follows the provisions of the Financial Accounting Standards Board (“FASB”) Interpretation No. 48 (“FIN 48”) Accounting for Uncertainty in Income Taxes. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. If applicable, the Trust recognizes interest accrued related to unrecognized tax benefits in the interest expense and penalties in other expenses in the Statement of Operations. Each of the tax years in the four year period ended October 31, 2008 remains subject to examination by taxing authorities.

The Trust purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (“IRS”) will agree with this opinion. In the event the IRS determines that the issuer does not comply with the relevant tax requirements, interest payments from a security could become federally taxable.

G. Dividends and Distributions to Shareholders — Dividends and distributions to shareholders are recorded on the ex-dividend date.

Morgan Stanley Quality Municipal Income Trust

Notes to Financial Statements - April 30, 2009 (unaudited) continued

H. Use of Estimates — The preparation of financial statements in accordance with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates.

2. Investment Advisory/Administration Agreements

Pursuant to an Investment Advisory Agreement with Morgan Stanley Investment Advisors Inc. (the “Investment Adviser”), the Trust pays an advisory fee, calculated weekly and payable monthly, by applying the annual rate of 0.27% to the Trust’s average weekly net assets, including current preferred shares and floating rate note and dealer trusts obligations of $53,500,000 entered into to retire outstanding preferred shares of the Trust.

Pursuant to an Administration Agreement with Morgan Stanley Services Company Inc. (the “Administrator”), an affiliate of the Investment Adviser, the Trust pays an administration fee, calculated weekly and payable monthly, by applying the annual rate of 0.08% to the Trust’s average weekly net assets, including current preferred shares and floating rate note and dealer trusts obligations of $53,500,000 entered into to retire outstanding preferred shares of the Trust.

Under an agreement between the Administrator and State Street Bank and Trust Company (“State Street”), State Street provides certain administrative services to the Trust. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Trust.

3. Security Transactions and Transactions with Affiliates

The Trust invests in Morgan Stanley Institutional Liquidity Funds – Tax-Exempt Portfolio – Institutional Class, an open-end management investment company managed by an affiliate of the Investment Adviser. Investment advisory fees paid by the Trust are reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Funds – Tax-Exempt Portfolio – Institutional Class with respect to assets invested by the Trust in Morgan Stanley Institutional Liquidity Funds – Tax-Exempt Portfolio – Institutional Class. For the six months ended April 30, 2009, advisory fees paid were reduced by $3,313 relating to the Trust’s investment in Morgan Stanley Institutional Liquidity Funds – Tax-Exempt Portfolio – Institutional Class. Income distributions earned by the Trust are recorded as “dividends from affiliate” in the Statement of Operations and totaled $12,342 for the six months ended April 30, 2009. During the six months ended April 30, 2009, the cost of purchases and sales of investments in Morgan Stanley Institutional Liquidity Funds – Tax-Exempt Portfolio – Institutional Class aggregated $60,947,063 and $55,653,260, respectively.

The cost of purchases and proceeds from sales of portfolio securities, excluding short-term investments, for the six months ended April 30, 2009 aggregated $18,262,884 and $62,693,052, respectively. Included in the aforementioned transactions is a purchase of $1,488,750 with other Morgan Stanley fund.

Morgan Stanley Quality Municipal Income Trust

Notes to Financial Statements - April 30, 2009 (unaudited) continued

The Trust has an unfunded noncontributory defined benefit pension plan covering certain independent Trustees of the Trust who will have served as independent Trustees for at least five years at the time of retirement. Benefits under this plan are based on factors which include years of service and compensation. The Trustees voted to close the plan to new participants and eliminate the future benefits growth due to increases to compensation after July 31, 2003. Aggregate pension costs for the six months ended April 30, 2009, included in “trustees’ fees and expenses” in the Statement of Operations amounted to $2,404. At April 30, 2009, the Trust had an accrued pension liability of $53,390 which is included in “accrued expenses and other payables” in the Statement of Assets and Liabilities.

The Trust has an unfunded Deferred Compensation Plan (the “Compensation Plan”) which allows each independent Trustee to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Trustees. Each eligible Trustee generally may elect to have the deferred amounts credited with a return equal to the total return on one or more of the Morgan Stanley funds that are offered as investment options under the Compensation Plan. Appreciation/depreciation and distributions received from these investments are recorded with an offsetting increase/decrease in the deferred compensation obligation and do not affect the net asset value of the Trust.

4. Preferred Shares of Beneficial Interest

The Trust is authorized to issue up to 1,000,000 non-participating preferred shares of beneficial interest having a par value of $.01 per share, in one or more series, with rights as determined by the Trustees, without approval of the common shareholders. The Trust has issued Series 1 through 5 Auction Rate Preferred Shares (“preferred shares”) which have a liquidation value of $50,000 per share plus the redemption premium, if any, plus accumulated but unpaid dividends, whether or not declared, thereon to the date of distribution. The Trust may redeem such shares, in whole or in part, at the original purchase price of $50,000 per share plus accumulated but unpaid dividends, whether or not declared, thereon to the date of redemption.

Dividends, which are cumulative, are reset through auction procedures.


		AMOUNT IN				RESET	RANGE OF
SERIES	SHARES+	THOUSANDS+	RATE+			DATE	DIVIDEND RATES++
1	832	$41,600		0.792	%	05/06/2009	0.594% – 2.056%
2	297	14,850		0.792		05/07/2009	0.640 – 1.904
3	832	41,600		0.792		05/07/2009	0.640 – 1.904
4	832	41,600		0.792		05/07/2009	0.640 – 1.904
5	297	14,850		0.792		05/08/2009	0.594 – 1.752


+		As of April 30, 2009.
++		For the six months ended April 30, 2009.

Morgan Stanley Quality Municipal Income Trust

Notes to Financial Statements - April 30, 2009 (unaudited) continued

Subsequent to April 30, 2009 and up through June 5, 2009, the Trust paid dividends to each of the Series 1 through 5 at rates ranging from 0.518% to 0.792% in the aggregate amount of $97,496.

The Trust is subject to certain restrictions relating to the preferred shares. Failure to comply with these restrictions could preclude the Trust from declaring any distributions to common shareholders or purchasing common shares and/or could trigger the mandatory redemption of preferred shares at liquidation value.

The preferred shares, which are entitled to one vote per share, generally vote with the common shares but vote separately as a class to elect two Trustees and on any matters affecting the rights of the preferred shares.

The Trust entered into additional floating rate note and dealer trusts obligations as an alternative form of leverage in order to redeem and to retire a portion of its preferred shares. Transactions in preferred shares were as follows:


	SHARES			VALUE
Outstanding at October 31, 2007		4,160		$	208,000,000
Shares retired		(1,070	)		(53,500,000	)

Outstanding at October 31, 2008		3,090			154,500,000
Shares retired		—			—

Outstanding at April 30, 2009		3,090		$	154,500,000

5. Common Shares of Beneficial Interest

Transactions in common shares of beneficial interest were as follows:


							CAPITAL
							PAID IN
				PAR			EXCESS OF
	SHARES			VALUE			PAR VALUE
Balance, October 31, 2007		23,786,843		$	237,868		$	332,772,449
Shares repurchased (weighted average discount 10.49%)⁺⁺⁺		(281,578	)		(2,816	)		(3,606,358	)


Balance, October 31, 2008		23,505,265			235,052			329,166,091
Shares repurchased		—			—			—

Balance, April 30, 2009		23,505,265		$	235,052		$	329,166,091

The Trustees have approved a share repurchase program whereby the Trust may, when appropriate, purchase shares in the open market or in privately negotiated transactions at a price not above market value or net asset value, whichever is lower at the time of purchase.


+++		The Trustees have voted to retire the shares purchased.

Morgan Stanley Quality Municipal Income Trust

Notes to Financial Statements - April 30, 2009 (unaudited) continued

6. Dividends to Common Shareholders

On April 7, 2009, the Trust declared the following dividends from net investment income:


AMOUNT	RECORD	PAYABLE
PER SHARE	DATE	DATE
$0.06625	May 22, 2009	May 29, 2009
$0.06625	June 19, 2009	June 26, 2009

7. Expense Offset

The expense offset represents a reduction of the fees and expenses for interest earned on cash balances maintained by the Trust with the transfer agent and custodian.

8. Purposes of and Risks Relating to Certain Financial Instruments

The Trust may invest a portion of its assets in inverse floating rate municipal securities, which are variable debt instruments that pay interest at rates that move in the opposite direction of prevailing interest rates. These investments are typically used by the Trust in seeking to enhance the yield of the portfolio or used as an alternative form of leverage in order to redeem a portion of the Trust’s preferred shares. Inverse floating rate investments tend to underperform the market for fixed rate bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Inverse floating rate investments have varying degrees of liquidity. Inverse floating rate securities in which the Trust may invest include derivative instruments such as residual interest bonds (“RIBs”) or tender option bonds (“TOBs”). Such instruments are typically created by a special purpose trust that holds long-term fixed rate bonds (which may be tendered by the Trust in certain instances) and sells two classes of beneficial interests: short-term floating rate interests, which are sold to third party investors, and inverse floating residual interests, which are purchased by the Trust. The short-term floating rate interests have first priority on the cash flow from the bonds held by the special purpose trust and the Trust is paid the residual cash flow from the bonds held by the special purpose trust.

The Trust generally invests in inverse floating rate investments that include embedded leverage, thus exposing the Trust to greater risks and increased costs. The market value of a “leveraged” inverse floating rate investment generally will fluctuate in response to changes in market rates of interest to a greater extent than the value of an unleveraged investment. The extent of increases and decreases in the value of inverse floating rate investments generally will be larger than changes in an equal principal amount of a fixed rate security having similar credit quality, redemption provisions and maturity, which may cause the Trust’s net asset value to be more volatile than if it had not invested in inverse floating rate investments.

In certain instances, the short-term floating rate interests created by the special purpose trust may not be able to be sold to third parties or, in the case of holders tendering (or putting) such interests for repayment of principal, may not be able to be remarketed to third parties. In such cases, the special purpose trust holding the long-term

Morgan Stanley Quality Municipal Income Trust

Notes to Financial Statements - April 30, 2009 (unaudited) continued

fixed rate bonds may be collapsed. In the case of RIBs or TOBs created by the contribution of long-term fixed income bonds by the Trust, the Trust will then be required to repay the principal amount of the tendered securities. During times of market volatility, illiquidity or uncertainty, the Trust could be required to sell other portfolio holdings at a disadvantageous time to raise cash to meet that obligation.

To hedge against adverse interest rate changes, the Trust may invest in financial futures contracts or municipal bond index futures contracts (“futures contracts”). These futures contracts involve elements of market risk in excess of the amount reflected in the Statement of Assets and Liabilities. The Trust bears the risk of an unfavorable change in the value of the underlying securities. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

The Trust may enter into interest rate swaps and may purchase or sell interest rate caps, floors and collars. The Trust expects to enter into these transactions primarily to manage interest rate risk, hedge portfolio positions and preserve a return or spread on a particular investment or portion of its portfolio. The Trust may also enter into these transactions to protect against any increase in the price of securities the Trust anticipates purchasing at a later date. Interest rate swap transactions are subject to market risk, risk of default by the other party to the transaction, risk of imperfect correlation and manager risk. Such risks may exceed the related amounts shown in the Statements of Assets and Liabilities.

9. Federal Income Tax Status

The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations which may differ from generally accepted accounting principles. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification. Dividends and distributions which exceed net investment income and net realized capital gains for tax purposes are reported as distributions of paid-in-capital.

As of October 31, 2008, the Trust had temporary book/tax differences primarily attributable to book amortization of discounts on debt securities, mark-to-market of open futures contracts and tax adjustments on inverse floaters.

10. Fair Valuation Measurements

The Trust adopted FASB Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), effective November 1, 2008. In accordance with SFAS 157, fair value is defined as the price that the Trust would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. SFAS 157 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed

Morgan Stanley Quality Municipal Income Trust

Notes to Financial Statements - April 30, 2009 (unaudited) continued

based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Trust’s investments. The inputs are summarized in the three broad levels listed below.


	•	Level 1 — quoted prices in active markets for identical investments

	•	Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

	•	Level 3 — significant unobservable inputs (including the Trust’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

The following is a summary of the inputs used as of April 30, 2009 in valuing the Trust’s investments carried at value:


			FAIR VALUE MEASUREMENTS AT APRIL 30, 2009 USING
			QUOTED PRICES IN		SIGNIFICANT		SIGNIFICANT
			ACTIVE MARKET FOR		OTHER OBSERVABLE		UNOBSERVABLE
			IDENTICAL ASSETS		INPUTS		INPUTS
	TOTAL		(LEVEL 1)		(LEVEL 2)		(LEVEL 3)
Investments in Securities	$	473,444,822	$	9,415,722		$464,029,100		—
Other Financial Instruments*		598,582		598,582		—		—

Total	$	474,043,404	$	10,014,304		$464,029,100		—


*		Other financial instruments include futures contracts.

11. Accounting Pronouncements

On March 19, 2008, FASB released Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133 (“SFAS 161”). SFAS 161 requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. The application of SFAS 161 is required for fiscal years beginning after November 15, 2008 and interim periods

Morgan Stanley Quality Municipal Income Trust

Notes to Financial Statements - April 30, 2009 (unaudited) continued

within those fiscal years. At this time, management is evaluating the implications of SFAS 161 and its impact on the Trust’s financial statements has not been determined.

On April 9, 2009, FASB issued Staff Position No. 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly (“FSP 157-4”). FSP 157-4 provides additional guidance for estimating fair value in accordance with SFAS 157, when the volume and level of activity for the asset or liability have significantly decreased. FSP 157-4 also requires additional disaggregation of the current SFAS 157 required disclosures. FSP 157-4 is effective for interim and annual reporting periods ending after June 15, 2009, and shall be applied prospectively. At this time, management is evaluating the implications of FSP 157-4 and the impact it will have on the Trust’s financial statements.

In May 2009, the FASB issued Statement of Financial Accounting Standards No. 165 (“SFAS 165”), Subsequent Events, which is intended to establish general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. SFAS 165 is effective for interim or annual financial periods ending after June 15, 2009. Management is currently evaluating the impact that the adoption of SFAS 165 will have on the Trust’s financial statement disclosures.

Morgan Stanley Quality Municipal Income Trust

Financial Highlights

Selected ratios and per share data for a common share of beneficial interest outstanding throughout each period:


	FOR THE SIX
	MONTHS ENDED				FOR THE YEAR ENDED OCTOBER 31,
	APRIL 30, 2009				2008				2007				2006				2005				2004
	(unaudited)
Selected Per Share Data:
Net asset value, beginning of period		$11.12				$14.50				$15.45				$15.38				$15.42				$15.54

Income (loss) from investment operations:
Net investment income⁽¹⁾		0.48				1.03				1.03				1.01				1.00				0.97
Net realized and unrealized gain (loss)		0.35				(3.45	)			(0.78	)			0.38				(0.17	)			0.18
Common share equivalent of dividends paid to preferred shareholders⁽¹⁾		(0.04	)			(0.30	)			(0.34	)			(0.27	)			(0.16	)			(0.15	)

Total income (loss) from investment operations		0.79				(2.72	)			(0.09	)			1.12				0.67				1.00

Less dividends and distributions from:
Net investment income		(0.38	)			(0.68	)			(0.72	)			(0.83	)			(0.81	)			(0.88	)
Net realized gain		—				—				(0.16	)			(0.26	)			—				(0.30	)

Total dividends and distributions		(0.38	)			(0.68	)			(0.88	)			(1.09	)			(0.81	)			(1.18	)

Anti-dilutive effect of shares repurchased⁽¹⁾		—				0.02				0.02				0.04				0.10				0.06

Net asset value, end of period		$11.53				$11.12				$14.50				$15.45				$15.38				$15.42

Market value, end of period		$10.73				$9.21				$12.90				$14.39				$13.71				$13.83

Total Return⁽²⁾		21.14%⁽⁵	⁾			(24.42	)	%		(4.59	)	%		13.20		%		5.14		%		3.32		%
Ratios to Average Net Assets of Common Shareholders:
Total expenses (before expense offset)		1.30%⁽³	⁾⁽⁶⁾			1.51%⁽³	⁾			1.38%⁽³	⁾			1.03		%		0.88		%		0.89		%
Total expenses (before expense offset, exclusive of interest and residual trust expenses)		0.90%⁽³	⁾⁽⁶⁾			0.83%⁽³	⁾			0.81%⁽³	⁾			0.84		%		0.88		%		0.89		%
Net investment income before preferred stock dividends		8.86%⁽³	⁾⁽⁶⁾			7.55%⁽³	⁾			6.90%⁽³	⁾			6.66		%		6.41		%		6.48		%
Preferred stock dividends		0.68%⁽⁶	⁾			2.23		%		2.25		%		1.78		%		1.01		%		1.01		%
Net investment income available to common shareholders		8.18%⁽³	⁾⁽⁶⁾			5.32%⁽³	⁾			4.65%⁽³	⁾			4.88		%		5.40		%		5.47		%
Rebate from Morgan Stanley affiliate		0.00%⁽⁴	⁾⁽⁶⁾			0.01		%		0.00%⁽⁴	⁾			—				—				—
Supplemental Data:
Net assets applicable to common shareholders, end of period, in thousands		$271,064				$261,348				$344,953				$374,247				$385,494				$407,553
Asset coverage on preferred shares at end of period		275		%		269		%		266		%		280		%		285		%		296		%
Portfolio turnover rate		4%⁽⁵	⁾			8		%		16		%		14		%		14		%		16		%


(1)		The per share amounts were computed using an average number of common shares outstanding during the period.
(2)		Total return is based upon the current market value on the last day of each period reported. Dividends and distributions are assumed to be reinvested at the prices obtained under the Trust’s dividend reinvestment plan. Total return does not reflect brokerage commissions.
(3)		The ratios reflect the rebate of certain Trust expenses in connection with the investments in Morgan Stanley affiliate during the period. The affect of the rebate on the ratios is disclosed in the above table as “Rebate from Morgan Stanley affiliate.”
(4)		Amount is less than 0.005%.
(5)		Not annualized.
(6)		Annualized.

See Notes to Financial Statements

Morgan Stanley Quality Municipal Income Trust

Portfolio Management (unaudited)

The Trust is managed within the Municipals team. The team consists of portfolio managers and analysts. The current member of the team primarily responsible for the day-to-day management of the Trust’s portfolio is Neil Stone, a Managing Director of the Investment Adviser.

Mr. Stone has been associated with the Investment Adviser in an investment management capacity since March 1995 and began managing the Trust in September 2007.

Morgan Stanley Quality Municipal Income Trust

Morgan Stanley Advisor Closed-End Funds
An Important Notice Concerning Our U.S. Privacy Policy (unaudited)

We are required by federal law to provide you with a copy of our Privacy Policy annually.

The following Policy applies to current and former individual investors in Morgan Stanley Advisor closed-end funds. This Policy is not applicable to partnerships, corporations, trusts or other non-individual clients or account holders. Please note that we may amend this Policy at any time, and will inform you of any changes to this Policy as required by law.

We Respect Your Privacy

We appreciate that you have provided us with your personal financial information. We strive to maintain the privacy of such information while we help you achieve your financial objectives. This Policy describes what non-public personal information we collect about you, why we collect it, and when we may share it with others. We hope this Policy will help you understand how we collect and share non-public personal information that we gather about you. Throughout this Policy, we refer to the non-public information that personally identifies you or your accounts as “personal information.”


1.	What Personal Information Do We Collect About You?

To serve you better and manage our business, it is important that we collect and maintain accurate information about you. We may obtain this information from applications and other forms you submit to us, from your dealings with us, from consumer reporting agencies, from our Web sites and from third parties and other sources.

For example:


•	We may collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through applications and other forms you submit to us.

•	We may obtain information about account balances, your use of account(s) and the types of products and services you prefer to receive from us through your dealings and transactions with us and other sources.

•	We may obtain information about your creditworthiness and credit history from consumer reporting agencies.

•	We may collect background information from and through third-party vendors to verify representations you have made and to comply with various regulatory requirements.

•	If you interact with us through our public and private Web sites, we may collect information that you provide directly through online communications (such as an e-mail address). We may also collect information about your Internet service provider, your domain name, your computer’s operating system and Web browser, your use of our Web sites and your product and service preferences, through the use of “cookies.” “Cookies” recognize your computer each time you return to one of our sites, and help to

Morgan Stanley Quality Municipal Income Trust

Morgan Stanley Advisor Closed-End Funds
An Important Notice Concerning Our U.S. Privacy Policy (unaudited) continued


	improve our sites’ content and personalize your experience on our sites by, for example, suggesting offerings that may interest you. Please consult the Terms of Use of these sites for more details on our use of cookies.


2.	When Do We Disclose Personal Information We Collect About You?

To provide you with the products and services you request, to serve you better and to manage our business, we may disclose personal information we collect about you to our affiliated companies and to non-affiliated third parties as required or permitted by law.

A. Information We Disclose to Our Affiliated Companies. We do not disclose personal information that we collect about you to our affiliated companies except to enable them to provide services on our behalf or as otherwise required or permitted by law.

B. Information We Disclose to Third Parties. We do not disclose personal information that we collect about you to non-affiliated third parties except to enable them to provide services on our behalf, to perform joint marketing agreements with other financial institutions, or as otherwise required or permitted by law. For example, some instances where we may disclose information about you to non-affiliated third parties include: for servicing and processing transactions, to offer our own products and services, to protect against fraud, for institutional risk control, to respond to judicial process or to perform services on our behalf. When we share personal information with these companies, they are required to limit their use of personal information to the particular purpose for which it was shared and they are not allowed to share personal information with others except to fulfill that limited purpose.


3.	How Do We Protect the Security and Confidentiality of Personal Information We Collect About You?

We maintain physical, electronic and procedural security measures to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information. Third parties that provide support or marketing services on our behalf may also receive personal information, and we require them to adhere to confidentiality standards with respect to such information.

Tru-stees

Frank L. Bowman

Michael Bozic

Kathleen A. Dennis

James F. Higgins

Dr. Manuel H. Johnson

Joseph J. Kearns

Michael F. Klein

Michael E. Nugent

W. Allen Reed

Fergus Reid

Officers

Michael E. Nugent

Chairperson of the Board

Randy Takian

President and Principal Executive Officer

Kevin Klingert

Vice President

Carsten Otto

Chief Compliance Officer

Stefanie V. Chang Yu

Vice President

Francis J. Smith

Treasurer and Chief Financial Officer

Mary E. Mullin

Secretary

Transfer Agent

Computershare Trust Company, N.A.

P.O. Box 43078

Providence, RI 02940-3078

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Two World Financial Center

New York, New York 10281

Legal Counsel

Clifford Chance US LLP

31 West 52nd Street

New York, New York 10019

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP

1177 Avenue of the Americas

New York, New York 10036

Investment Adviser

Morgan Stanley Investment Advisors Inc.

522 Fifth Avenue

New York, New York 10036

The financial statements included herein have been taken from the records of the Trust without examination by the independent auditors and accordingly they do not express an opinion thereon.

INVESTMENT MANAGEMENT

Morgan Stanley

Quality Municipal Income Trust

NYSE: IQI

Semiannual
Report
April 30, 2009

IQISAN

IU09-02727P-Y04/09

Item 2. Code of Ethics.

Not applicable for semiannual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semiannual reports.

Item 4. Principal Accountant Fees and Services

Not applicable for semiannual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable for semiannual reports.

Item 6.

(a) Refer to Item 1.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable for semiannual reports.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Applicable only to reports filed by closed-end funds.

Item 9. Closed-End Fund Repurchases

REGISTRANT PURCHASE OF EQUITY SECURITIES

(d) Maximum

Number (or

Number of

Approximate

Shares (or

Dollar Value)

Units)

of Shares (or

(a) Total

Purchased as

Units) that May

Number of

Part of Publicly

Yet Be

Shares (or

(b) Average

Announced

Purchased

Units)

Price Paid per

Plans or

Under the Plans

Period

Purchased

Share (or Unit)

Programs

or Programs

mo-da-year — mo-da-year

N/A

mo-da-year — mo-da-year

N/A

mo-da-year — mo-da-year

N/A

mo-da-year — mo-da-year

N/A

mo-da-year — mo-da-year

N/A

mo-da-year — mo-da-year

N/A

Total

N/A

Item 10. Submission of Matters to a Vote of Security Holders

Not applicable.

Item 11. Controls and Procedures

(a) The Trust’s/Fund’s principal executive officer and principal financial officer have concluded that the Trust’s/Fund’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Trust/Fund in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

(b) There were no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits

(a) Code of Ethics – Not applicable for semiannual reports.

(b) A separate certification for each principal executive officer and principal financial officer of the registrant are attached hereto as part of
EX-99.CERT.

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.

Morgan Stanley Quality Municipal Income Trust

/s/ Randy Takian
Randy Takian
Principal Executive Officer
June 23, 2009

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

/s/ Randy Takian
Randy Takian
Principal Executive Officer
June 23, 2009

/s/ Francis Smith
Francis Smith
Principal Financial Officer
June 23, 2009