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:__811-09401______

_______BlackRock Strategic Municipal Trust_______
(Exact name of registrant as specified in charter)

100 Bellevue Parkway, Wilmington, DE
19809
(Address of principal executive offices)
(Zip code)

Robert S. Kapito, President

BlackRock Strategic Municipal Trust

      40 East 52nd Street, New York, NY 10022      
(Name and address of agent for service)


Registrant’s telephone number, including area code:_888-825-2257__________________

Date of fiscal year end:___December 31, 2006
Date of reporting period:__September 30, 2006

Item 1. Schedule of Investments.

The Registrant’s unaudited schedule of investments as of the close of the reporting period pursuant to Rule 30b1-5 under the Investment Company Act of 1940 is as follows:



PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 2006 (unaudited)

BlackRock Strategic Municipal Trust (BSD)

Principal            
      Amount       Option Call    
  Rating1   (000)   Description   Provisions2   Value  
        LONG-TERM INVESTMENTS—144.8%        
          Alabama—9.6%        
  AAA   $   320   Birmingham Wtr. Wks. & Swr. Brd. RB, Ser. A, 4.50%, 1/01/35, FSA   01/16 @ 100   $    318,963  
  Baa3   3,000   Courtland Ind. Dev. Brd. PCRB, Champion Intl. Corp. Proj., Ser. A, 6.70%, 11/01/29, AMT   11/09 @ 101   3,218,070  
  AA   7,000   Pub. Sch. & Coll. Auth. Cap. Impvt. RB, Ser. C, 5.75%, 7/01/18   07/09 @ 101.5   7,463,470  
                  11,000,503  
          Arizona—0.8%        
          San. Luis Fac. Dev. Corp. RB, Regl. Detention Ctr. Proj.,        
  NR   210       6.25%, 5/01/15   05/10 @ 107   213,364  
  NR   210       7.00%, 5/01/20   05/10 @ 107   213,877  
  NR   420       7.25%, 5/01/27   05/10 @ 107   431,092  
                  858,333  
          California—10.9%        
  AAA   5,000   California GO, 5.00%, 3/01/33   03/15 @ 100   5,226,650  
          Cnty. Tobacco Sec. Agcy. RB,        
  BBB-   585       Ser. B, Zero Coupon, 6/01/46   06/16 @ 17.602   53,153  
  BB   3,095       Ser. C, Zero Coupon, 6/01/55   06/16 @ 8.9   128,907  
  NR   3,955       Stanislaus Cnty. Proj., Ser. D, Zero Coupon, 6/01/55   06/16 @ 6.219   118,531  
  AA-   1,835   Univ. of California RB, Ser. B, 4.75%, 5/15/38   05/13 @ 101   1,853,607  
  AAA   5,000   West Valley-Mission Cmnty. Coll. Dist. GO, Election 2004 A, 4.75%, 8/01/30, FSA   08/16 @ 100   5,126,050  
                  12,506,898  
          Colorado—3.1%        
  AAA   10,000   Northwest Pkwy. Pub. Hwy. Auth. RB, Ser. B, Zero Coupon, 6/15/30, FSA   06/11 @ 31.387   2,577,400  
  Baa2   440   Park Creek Met. Dist. Ppty. Tax RB, 5.50%, 12/01/37   12/15 @ 101   457,890  
  AAA   445   Springs Co. Utils. RB, Ser. C, 5.00%, 11/15/45, FSA   11/15 @ 100   463,152  
                  3,498,442  
          Connecticut—8.5%        
          Mashantucket Western Pequot Tribe RB,        
  Baa3   1,500 3     Ser. A, 5.50%, 9/01/28   09/09 @ 101   1,544,895  
  Baa3   8,000 3     Ser. B, 5.75%, 9/01/27   09/07 @ 102   8,221,040  
                  9,765,935  
          Florida—14.3%        
  NR   1,730   Arborwood Cmnty. Dev. Dist. SA, Master Infrastructure Proj., Ser. B, 5.10%, 5/01/14   No Opt. Call   1,760,344  
  BBB+   1,050   Halifax Hosp. Med. Ctr. RB, Ser. A, 5.00%, 6/01/38   06/16 @ 100   1,081,070  
  NR   3,300   Hillsborough Cnty. Ind. Dev. Auth. RB, Nat. Gypsum Proj., Ser. A, 7.125%, 4/01/30, AMT   10/10 @ 101   3,608,616  
  AAA   530   JEA Wtr. & Swr. Sys. RB, Ser. A, 4.75%, 10/01/36, MBIA   04/11 @ 100   534,691  
  BB+   2,045   Miami Beach Hlth. Facs. Auth. RB, Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21   11/14 @ 100   2,312,486  
  AAA   5,265   Orange Cnty. Tourist Dev. RB, 4.75%, 10/01/32, XLCA   10/16 @ 100   5,395,519  
  NR   1,625   Sumter Landing Cmnty. Dev. Dist. RB, Ser B, 5.70%, 10/01/38   10/15 @ 100   1,651,813  
                  16,344,539  
          Illinois—10.2%        
  NR   850 3 Centerpoint Intermodal Ctr. Prog. Trust TA, Ser. A, 8.00%, 6/15/23   No Opt. Call   871,463  
  AAA   520 4 Chicago Brd. of Ed. Sch. Reform GO, 5.75%, 12/01/07, AMBAC   N/A   543,312  
  AAA   5,000   Edl. Fac. Auth. RB, Northwestern Univ. Proj., 5.00%, 12/01/33   12/13 @ 100   5,204,050  
          Fin. Auth. RB,        
  BB+   295       Friendship Vlg. Schaumburg Proj., Ser. A, 5.625%, 2/15/37   02/15 @ 100   301,652  
  Baa2   375       Student Hsg. MJH Ed. Asst. Living Proj., Ser. A, 5.125%, 6/01/35   06/14 @ 100   382,301  
  Baa3   300       Student Hsg. MJH Ed. Asst. Living Proj., Ser. B, 5.375%, 6/01/35   06/14 @ 100   305,739  
  BBB   725       Student Hsg. Edl. Advancement Fund Proj., Inc., Ser. B, 5.00%, 5/01/25   11/16 @ 100   746,337  
  BBB   580       Student Hsg. Edl. Advancement Fund Proj., Inc., Ser. B, 5.00%, 5/01/30   11/16 @ 100   595,509  
  AAA   1,740   Mun. Elec. Agcy. Pwr. Sply. RB, 4.50%, 2/01/35, FGIC   02/16 @ 100   1,726,132  
  AAA   1,000   Vlg. of Bolingbrook GO, Ser. A, 4.75%, 1/01/38, MBIA   01/15 @ 100   1,014,240  
                  11,690,735  
          Indiana—1.2%        
  AAA   1,325   Mun. Pwr. Agcy. Pwr. Sply. Sys. RB, Ser. A, 4.50%, 1/01/32, AMBAC   01/16 @ 100   1,324,921  

1

BlackRock Strategic Municipal Trust (BSD) (continued)

Principal            
      Amount       Option Call    
  Rating1   (000)   Description   Provisions2   Value  
        Kentucky—12.1%        
  AAA   $32,345   Econ. Dev. Fin. Sys. RB, Norton Hlth. Care, Inc. Proj., Ser. B, Zero Coupon, 10/01/24, MBIA   No Opt. Call   $ 13,850,776  
          Louisiana—2.3%        
  AAA   2,500   Gas & Fuels Tax RB, Ser. A, 5.00%, 5/01/35, FGIC   05/15 @ 100   2,617,000  
          Massachusetts—1.8%        
  AA   1,980   Wtr. Res. Auth. RB, Ser. A, 5.00%, 8/01/41   08/16 @ 100   2,077,040  
          Michigan—2.5%        
          Hosp. Fin. Auth. RB,        
  A1   730       Henry Ford Hlth. Sys. Proj., Ser. A, 5.25%, 11/15/46   11/16 @ 100   771,625  
  AAA   2,000 4     Mercy Hlth. Svcs. Proj., 5.75%, 8/15/09, MBIA   N/A   2,138,500  
                  2,910,125  
          Missouri—4.1%        
  A2   2,000 4 Hlth. & Edl. Facs. Auth. Hlth. Facs. RB, St. Anthony’s Med. Ctr. Proj., 6.125%, 12/01/10   N/A   2,211,360  
  AAA   2,385   Joint Mun. Elec. Util. Comm. RB, Plum Point Proj., 4.60%, 1/01/36, MBIA   01/16 @ 100   2,420,751  
                  4,632,111  
          Multi-State—5.7%        
  Baa1   2,000 3 Charter Mac Equity Issuer Trust, Ser. B, 7.60%, 11/30/50   11/10 @ 100   2,230,040  
  A3   4,000 3 MuniMae TE Bond Subsidiary LLC, Ser. A, 6.875%, 6/30/49   06/09 @ 100   4,265,240  
                  6,495,280  
          Nebraska—1.1%        
  AA   1,205   Omaha Pub. Pwr. Dist. Elec. Sys. RB, Ser. A, 4.75%, 2/01/44   02/14 @ 100   1,219,050  
          Nevada—3.9%        
  A+   905   Clark Cnty. Econ. Dev. RB, Alexander Dawson Sch. Proj., 5.00%, 5/15/29   05/16 @ 100   936,385  
  AAA   3,400   Truckee Meadows Wtr. Auth. RB, 4.875%, 7/01/34, XLCA   07/16 @ 100   3,499,450  
                  4,435,835  
          New Jersey—0.6%        
  NR   645   Middlesex Cnty. Impvt. Auth. RB, Heldrich Ctr. Hotel Proj., Ser. B, 6.25%, 1/01/37   01/15 @ 100   666,820  
          New York—14.0%        
  NR   315   Albany Indl. Dev. Agcy. RB, New Covenant Charter Sch. Proj., Ser. A, 7.00%, 5/01/35   05/15 @ 102   314,887  
  AA-   5,275   Liberty Dev. Corp. RB, 5.25%, 10/01/35   No Opt. Call   6,014,924  
  Aa1   2,470   Mtg. Agcy. Homeowner Mtg. RB, Ser. 85, 5.70%, 10/01/17   09/09 @ 100   2,583,966  
  B   6,000   New York City Indl. Dev. Agcy. RB, American Airlines, JFK Intl. Arpt. Proj., 7.75%,        
              8/01/31, AMT   08/16 @ 101   7,094,160  
                  16,007,937  
          Ohio—5.6%        
  AAA   6,265   Air Qual. Dev. Auth. PCRB, Dayton Pwr. & Lt. Co. Proj., 4.80%, 1/01/34, FGIC   07/15 @ 100   6,399,196  
          Oklahoma—1.2%        
  B   1,225   Tulsa Mun. Arpt. Trust RB, Ser. A, 7.75%, 6/01/35, AMT   No Opt. Call   1,404,511  
          Pennsylvania—7.5%        
          Econ. Dev. Fin. Auth. RB,        
  A3   700       Amtrak Proj., Ser. A, 6.125%, 11/01/21, AMT   05/11 @ 101   754,649  
  A3   1,000       Amtrak Proj., Ser. A, 6.25%, 11/01/31, AMT   05/11 @ 101   1,084,930  
  A3   1,000       Amtrak Proj., Ser. A, 6.50%, 11/01/16, AMT   05/11 @ 101   1,095,620  
  NR   1,000       Amtrak Proj., Ser. G, 5.125%, 12/01/15, AMT   No Opt. Call   997,070  
  BB-   3,555       Reliant Energy Conv. Proj., Ser. A, 6.75%, 12/01/36, AMT   12/09 @ 103   3,824,007  
  AAA   720   Washington Cnty. Auth. RB, Cap. Fdg. & Equip. Proj., 6.15%, 12/01/29, AMBAC   No Opt. Call   769,997  
                  8,526,273  
          Puerto Rico—1.6%        
  BBB   1,820   Comnwlth. Pub. Impvt. GO, Ser. B, 5.00%, 7/01/35   07/16 @ 100   1,885,192  
          South Carolina—2.6%        
          Jobs Econ. Dev. Auth. Hosp. Facs. RB, Palmetto Hlth. Proj.,        
  BBB+   2,225 4     Ser. C, 7.00%, 8/01/13   N/A   2,661,167  
  BBB+   275       Ser. C, 7.00%, 8/01/30   08/13 @ 100   320,435  
                  2,981,602  
          Tennessee—1.9%        
  AAA   2,000   Memphis Shelby Cnty. Arpt. Auth. RB, Ser. D, 6.00%, 3/01/24, AMBAC, AMT   03/10 @ 101   2,123,280  

2

BlackRock Strategic Municipal Trust (BSD) (continued)

Principal            
      Amount       Option Call    
  Rating1   (000)   Description   Provisions2   Value  
        Texas—12.6%        
  BBB   $  575   Alliance Arpt. Auth., Inc. Spl. Fac. RB, FedEx Corp. Proj., 4.85%, 4/01/21, AMT   04/16 @ 100   $   582,860  
  AAA   4,750   Harris Cnty. Houston Sports Auth. RB, Ser. A, Zero Coupon, 11/15/38, MBIA   11/30 @ 61.166   902,025  
  AAA   4,060   La Joya Indpt. Sch. Dist. GO, 5.00%, 2/15/34, PSF   02/14 @ 100   4,211,601  
  AAA   1,500   Lower Colorado River Auth. RB, Ser. A, 5.50%, 5/15/21, AMBAC   05/09 @ 101   1,579,860  
  AAA   295   Montgomery Cnty. Mun. Util. Dist. No. 46 Wtr. Wks. & Swr. Sys. GO, 4.75%, 3/01/30, MBIA   03/14 @ 100   300,708  
  AAA   1,000   Pearland GO, 4.75%, 3/01/29, FGIC   03/16 @ 100   1,029,020  
          Tpke. Auth. Central Sys. RB,        
  AAA   15,000       Zero Coupon, 8/15/31, AMBAC   08/12 @ 32.807   3,810,750  
  AAA   1,450       Ser. A, 5.00%, 8/15/42, AMBAC   08/12 @ 100   1,494,457  
  AA+   500   Wtr. Fin. Asst. GO, 5.75%, 8/01/22   08/10 @ 100   536,585  
                  14,447,866  
          Utah—3.6%        
          Intermountain Pwr. Agcy. RB,        
  AAA   2,675       5.75%, 7/01/19, MBIA   07/07 @ 102   2,769,053  
  AAA   1,325 4     Ser. B, 5.75%, 7/01/07, MBIA   N/A   1,372,687  
                  4,141,740  
          Washington—1.6%        
  AAA   1,160   Hlth. Care Facs. Auth. RB, Providence Hlth. Care Svcs. Proj., Ser. A, 4.625%, 10/01/34, FGIC   10/16 @ 100   1,172,493  
  AAA   620   King Cnty. Swr. RB, 5.00%, 1/01/36, FSA   01/16 @ 100   650,355  
                  1,822,848  
          Total Long-Term Investments (cost $153,572,188)       165,634,788  
          SHORT-TERM INVESTMENTS—9.4%        
          Tennessee—0.1%        
  VMIG1   90 5 Montgomery Cnty. Pub. Bldg. Auth. RB, 3.85%, 10/02/06, FRDD   N/A   90,000  
      Shares            
      (000)            
          Money Market Funds—9.3%        
  NR   5,700   AIM Tax Free Cash Reserve Portfolio   N/A   5,700,000  
  NR   4,900   SSgA Tax Free Money Mkt. Fund   N/A   4,900,000  
                  10,600,000  
          Total Short-Term Investments (cost $10,690,000)       10,690,000  
          Total Investments—154.2% (cost $164,262,1886)       $176,324,788  
          Other assets in excess of liabilities—0.0%       19,796  
          Preferred shares at redemption value, including dividends payable—(54.2)%       (62,019,109)  
          Net Assets Applicable to Common Shareholders—100%       $114,325,475  
 

1 Using the highest of Standard & Poor’s, Moody’s Investors Services or Fitch’s ratings.
2 Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.
3 Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of September 30, 2006, the Trust held 15.0% of its net assets, with a current market value of $17,132,678, in securities restricted as to resale.
4 This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par.
5 For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Rate shown is rate as of September 30, 2006.
6 Cost for Federal income tax purposes is $164,234,320. The net unrealized appreciation on a tax basis is $12,090,468, consisting of $12,144,666 gross unrealized appreciation and $54,198 gross unrealized depreciation.
KEY TO ABBREVIATIONS
 
AMBAC — American Municipal Bond Assurance Corp.   PCRB — Pollution Control Revenue Bond  
AMT — Subject to Alternative Minimum Tax   PSF — Public School Fund Guaranteed  
FGIC — Financial Guaranty Insurance Co.   RB — Revenue Bond  
FRDD — Floating Rate Daily Demand   SA — Special Assessment  
FSA — Financial Security Assurance   TA — Tax Allocation  
GO — General Obligation   XLCA — XL Capital Assurance  
MBIA — Municipal Bond Insurance Assoc.        

3

Item 2. Controls and Procedures.

(a) The Registrant’s principal executive and principal financial officers have evaluated the Registrant’s disclosure controls and procedures within 90 days of this filing and have concluded, as of that date, that the Registrant’s disclosure controls and procedures were reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-Q was recorded, processed, summarized, and reported within the required time periods and that information to be disclosed by the Registrant in this Form N-Q was accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a -3(d)) that occurred during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 3. Exhibits.

Separate certifications of the Registrant’s Principal Executive and Financial Officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached as 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.

(Registrant)___BlackRock Strategic Municipal Trust___

By: /s/ Donald C. Burke
_____________________________________________________________________
Name: Donald C. Burke
Title: Treasurer and Principal Financial Officer
Date: November 29, 2006

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/ Robert S. Kapito
_____________________________________________________________________
Name: Robert S. Kapito
Title: President and Principal Executive Officer
Date: November 29, 2006

By: /s/ Donald C. Burke
_____________________________________________________________________
Name: Donald C. Burke
Title: Treasurer and Principal Financial Officer
Date: November 29, 2006