Investment Portfolio

as of August 31, 2008 (Unaudited)

Principal
Amount ($)

Value ($)

Municipal Bonds and Notes 149.4%

Alabama 2.8%

Alabama, Sales & Special Tax Revenue, Public School and College Authority, Series C, 5.625%, 7/1/2013

1,000,000

1,043,610

Huntsville, AL, Hospital & Healthcare Revenue, Health Care Authority, Series A, Prerefunded, 5.75%, 6/1/2031

1,500,000

1,641,495

Sylacauga, AL, Health Care Authority Revenue, Coosa Valley Medical Center, Series A, 6.0%, 8/1/2035

1,000,000

886,620

3,571,725

Arizona 1.4%

Arizona, Project Revenue, Health Facilities Authority, The New Foundation Project, 8.25%, 3/1/2019

1,725,000

1,736,489

California 10.2%

California, Morongo Band of Mission Indians, Enterprise Casino Revenue, Series B, 144A, 6.5%, 3/1/2028

1,000,000

973,420

California, Special Assessment Revenue, Golden State Tobacco Securitization Corp.:

Series A-1, 5.0%, 6/1/2033

2,000,000

1,587,560

Series B, Prerefunded, 5.625%, 6/1/2038

1,890,000

2,092,797

Series 2003-A-1, Prerefunded, 6.75%, 6/1/2039

4,500,000

5,204,610

Sacramento County, CA, Sales & Special Tax Revenue, Bradshaw Road Project, 7.2%, 9/2/2015

870,000

879,979

Sacramento, CA, Project Revenue, City Financing Authority, Convention Center Hotel, Series A, Prerefunded, 6.25%, 1/1/2030

1,985,000

2,083,496

12,821,862

Colorado 3.1%

Colorado, Health Facilities Authority Revenue, Christian Living Communities Project, Series A, 5.75%, 1/1/2037

1,000,000

874,890

Colorado, Hospital & Healthcare Revenue, Portercare Adventist Health Project, Prerefunded, 6.5%, 11/15/2031

1,000,000

1,131,540

Colorado, Public Energy Authority, Natural Gas Purchased Revenue, 6.25%, 11/15/2028

635,000

617,201

Colorado, Transportation/Tolls Revenue, Northwest Parkway Public Highway Authority, Series D, Prerefunded, 7.125%, 6/15/2041

1,145,000

1,291,434

3,915,065

Connecticut 3.5%

Greenwich, CT, Multi-Family Housing Revenue, 6.35%, 9/1/2027

2,000,000

2,033,920

Mashantucket, CT, Mashantucket Western Pequot Tribe, Special Revenue, Series A, 144A, 6.5%, 9/1/2031

705,000

678,591

Mashantucket, CT, Sports, Expo & Entertainment Revenue, Mashantucket Western Pequot Tribe:

Series B, 144A, Zero Coupon, 9/1/2017

2,000,000

1,189,180

Series B, 144A, Zero Coupon, 9/1/2018

1,000,000

531,130

4,432,821

District of Columbia 0.5%

District of Columbia, General Obligation, Series A, 5.0%, 6/1/2018 (a)

660,000

667,537

Florida 4.1%

Hillsborough County, FL, Industrial Development Authority Revenue, Health Facilities, University Community Hospital, Series A, 5.625%, 8/15/2029

1,875,000

1,794,919

Miami Beach, FL, Health Facilities Authority Hospital Revenue, Mount Sinai Medical Center, 144A, 6.75%, 11/15/2029

1,600,000

1,609,024

Orlando, FL, Greater Aviation Authority, Airport Facilities Revenue, Jet Blue Airways Corp., AMT, 6.5%, 11/15/2036

1,000,000

689,200

Orlando, FL, Special Assessment Revenue, Conroy Road Interchange Project, Series A, 5.8%, 5/1/2026

1,000,000

988,480

5,081,623

Georgia 1.9%

Americus-Sumter County, GA, Hospital & Healthcare Revenue, Hospital Authority, South Georgia Methodist, Series A, 6.375%, 5/15/2029

1,250,000

1,226,350

Georgia, Main Street Natural Gas, Inc., Gas Project Revenue, Series A, 5.5%, 9/15/2024

1,220,000

1,105,161

2,331,511

Guam 0.8%

Guam, Government Waterworks Authority, Water & Wastewater System Revenue, 6.0%, 7/1/2025

1,000,000

995,610

Illinois 5.7%

Illinois, Finance Authority Revenue, Monarch Landing, Inc. Facility:

Series A, 7.0%, 12/1/2027

1,000,000

1,000,860

Series A, 7.0%, 12/1/2037

1,000,000

970,240

Illinois, Finance Authority Revenue, Three Crowns Park Plaza, Series A, 5.875%, 2/15/2038

1,000,000

885,200

Illinois, Hospital & Healthcare Revenue, ETM, 6.75%, 2/15/2016

2,180,000

2,338,508

Illinois, Upper River Valley Development Authority, Solid Waste Disposal Revenue, Waste Recovery Project, AMT, 5.9%, 2/1/2014

1,165,000

1,116,757

University Park, IL, Sales & Special Tax Revenue, Governors Gateway Industrial Park, 8.5%, 12/1/2011

795,000

797,870

7,109,435

Indiana 2.8%

Indiana, Senior Care Revenue, Health Facilities Finance Authority, Franciscan Eldercare Community Services, 5.875%, 5/15/2029

3,000,000

2,681,490

Vigo County, IN, Hospital Authority Revenue, Union Hospital, Inc., 144A, 5.7%, 9/1/2037

1,000,000

855,360

3,536,850

Iowa 2.3%

Cedar Rapids, IA, First Mortgage Revenue, Cottage Grove Place, Series A, 5.875%, 7/1/2028

1,670,000

1,421,655

Iowa, Finance Authority Retirement Community Revenue, Edgewater LLC Project, 6.5%, 11/15/2027

1,000,000

937,970

Lake City, IA, Senior Care Revenue, Health Care Facility, Opportunity Living Project, 144A, 6.45%, 5/1/2011

525,000

527,546

2,887,171

Kansas 4.5%

Lenexa, KS, Health Care Facility Revenue, 5.5%, 5/15/2039

2,000,000

1,762,800

Manhattan, KS, Senior Care Revenue, Meadowlark Hills Retirement, Series A, Prerefunded, 6.5%, 5/15/2028

300,000

313,287

Overland Park, KS, Industrial Development Revenue, Series A, Prerefunded, 7.375%, 1/1/2032

2,000,000

2,230,200

Wyandotte County, KS, Unified Government Special Obligation Revenue, Sales Tax, Series B, 5.0%, 12/1/2020

1,400,000

1,369,158

5,675,445

Kentucky 1.2%

Kentucky, Economic Development Finance Authority, Health System Revenue, Norton Healthcare:

Series A, Prerefunded, 6.625%, 10/1/2028

790,000

867,231

Series A, 6.625%, 10/1/2028

210,000

219,051

Kentucky, Economic Development Finance Authority, Louisville Arena Project Revenue, Series A-1, 6.0%, 12/1/2033 (a)

365,000

372,796

1,459,078

Louisiana 3.2%

Louisiana, Local Government Environmental Facilities, Community Development Authority Revenue, 6.75%, 11/1/2032

1,000,000

984,080

Morehouse Parish, LA, Pollution Control Revenue, International Paper Co. Project, Series A, 5.25%, 11/15/2013

3,000,000

2,981,550

3,965,630

Maryland 5.9%

Anne Arundel County, MD, General Obligation, National Business Park Project, Prerefunded, 144A, 7.375%, 7/1/2028

966,000

1,070,222

Anne Arundel County, MD, Revenue Lease, Arundel Mills Project, Prerefunded, 7.1%, 7/1/2029

1,500,000

1,592,400

Maryland, Higher Education Revenue, Collegiate Housing Foundation, Series A, Prerefunded, 5.75%, 6/1/2031

1,000,000

1,049,120

Maryland, Hospital & Healthcare Revenue, University of Maryland Medical System, Prerefunded, 6.75%, 7/1/2030

1,000,000

1,092,560

Maryland, State Economic Development Corp. Revenue, Senior Lien Project, Chesapeake Bay, Series B, 5.25%, 12/1/2031

2,000,000

1,554,280

Maryland, State Health & Higher Educational Facilities Authority Revenue, Washington County Hospital, 5.75%, 1/1/2033

1,000,000

981,930

7,340,512

Massachusetts 5.4%

Massachusetts, Hospital & Healthcare Revenue, Health & Educational Facilities Authority, Civic Investments, Series A, Prerefunded, 9.0%, 12/15/2015

1,700,000

2,052,971

Massachusetts, Industrial Development Revenue, Development Finance Agency, Series A, 7.1%, 7/1/2032

1,875,000

1,891,219

Massachusetts, Project Revenue, Health & Educational Facilities Authority, Jordan Hospital, Series E, 6.75%, 10/1/2033

1,790,000

1,779,153

Massachusetts, State Health & Educational Facilities Authority Revenue, Partners Healthcare Systems:

Series C, Prerefunded, 5.75%, 7/1/2032

965,000

1,062,610

Series C, 5.75%, 7/1/2032

35,000

35,604

6,821,557

Michigan 4.5%

Kalamazoo, MI, Economic Develpoment Corp. Revenue, Heritage Community, 5.375%, 5/15/2027

1,000,000

849,080

Kalamazoo, MI, Industrial Development Revenue, Economic Development Corp., Series A, Prerefunded, 7.5%, 5/15/2029

2,000,000

2,204,920

Saginaw, MI, Hospital & Healthcare Revenue, Hospital Finance Authority, Covenant Medical Center, Series F, 6.5%, 7/1/2030

1,000,000

1,052,030

Tawas City, MI, Hospital Finance Authority, St. Joseph Health Services:

Series A, ETM, 5.6%, 2/15/2013

230,000

242,606

Series A, ETM, 5.75%, 2/15/2023

1,300,000

1,328,925

5,677,561

Missouri 0.6%

Branson, MO, Regional Airport Transportation Development District, Airport Revenue, Series B, AMT, 6.0%, 7/1/2037

250,000

202,113

St. Louis, MO, Special Assessment Revenue, Scullin Redevelopment Area, Series A, 10.0%, 8/1/2010

535,000

583,016

785,129

Nevada 8.1%

Clark County, NV, School District General Obligation, Series A, 5.0%, 6/15/2022 (a)

7,325,000

7,739,375

Henderson, NV, Health Care Facility Revenue, Catholic Healthcare West, Series B, 5.25%, 7/1/2031

2,000,000

1,901,600

Las Vegas, NV, Transportation/Tolls Revenue, Las Vegas Monorail Project, 7.375%, 1/1/2030

2,000,000

574,880

10,215,855

New Hampshire 1.9%

New Hampshire, Higher Education Revenue, Health & Educational Facilities Authority, New Hampshire College Issue, Prerefunded, 7.4%, 1/1/2023

1,000,000

1,123,570

New Hampshire, Hospital & Healthcare Revenue, Rivermead at Peterborough Retirement Community, 5.75%, 7/1/2028

1,500,000

1,324,500

2,448,070

New Jersey 2.5%

New Jersey, Economic Development Authority Revenue, Cigarette Tax, 5.75%, 6/15/2034

290,000

270,216

New Jersey, Health Care Facilities Financing Authority Revenue, St. Joseph's Health Care System, 6.625%, 7/1/2038

1,430,000

1,370,283

New Jersey, Resource Recovery Revenue, Tobacco Settlement Financing Corp., 5.75%, 6/1/2032

1,330,000

1,445,803

3,086,302

New Mexico 2.1%

Farmington, NM, Pollution Control Revenue, 5.8%, 4/1/2022

2,750,000

2,633,977

New York 20.2%

Long Island, NY, Power Authority, Electric System Revenue, Series E, 5.0%, 12/1/2021 (a)

2,900,000

2,969,136

Nassau County, NY, Industrial Development Agency, Continuing Care Retirement, Amsterdam at Harborside, Series A, 6.7%, 1/1/2043

1,000,000

994,950

Nassau County, NY, Project Revenue, North Shore Healthcare Systems Project, Series B, 5.875%, 11/1/2011

475,000

494,542

New York, Core City General Obligation, Series C, 7.0%, 2/1/2010

315,000

321,215

New York, Sales & Special Tax Revenue, Metropolitan Transportation Authority, Series A, Prerefunded, 5.125%, 4/1/2019 (a)

1,450,000

1,622,419

New York, State General Obligation Lease, Higher Education Revenue, Dormitory Authority, State University, 5.125%, 5/15/2021 (a)

1,515,000

1,533,331

New York, Transportation/Tolls Revenue, Triborough Bridge and Tunnel Authority Systems, Series Y, ETM, 6.0%, 1/1/2012

5,000,000

5,341,900

New York & New Jersey Port Authority, One Hundred Forty-Seventh, AMT, 5.0%, 10/15/2023 (a)

8,260,000

8,223,078

New York City, NY, Industrial Development Agency Revenue, Liberty-7, World Trade Center, Series A, 6.25%, 3/1/2015

2,000,000

2,022,180

New York City, NY, Industrial Development Agency, Special Facility Revenue, American Airlines, JFK International Airport, AMT, 8.0%, 8/1/2028

2,000,000

1,849,780

25,372,531

North Carolina 1.9%

North Carolina, Electric Revenue, Municipal Power Agency:

Series C, 5.375%, 1/1/2017

1,000,000

1,030,500

Series B, 6.375%, 1/1/2013

1,300,000

1,373,918

2,404,418

North Dakota 0.9%

Grand Forks, ND, Hospital & Healthcare Revenue, Altru Health Care System, Prerefunded, 7.125%, 8/15/2024

1,000,000

1,100,050

Ohio 2.3%

Buckeye, OH, Tobacco Settlement Financing Authority, Series A-2, 5.875%, 6/1/2030

3,350,000

2,911,250

Pennsylvania 4.2%

Montgomery County, PA, Industrial Development Authority Revenue, Whitemarsh Continuing Care, 6.25%, 2/1/2035

600,000

541,464

Montgomery County, PA, Senior Care Revenue, Higher Education & Health Authority, Philadelphia Geriatric Center, Series A, Prerefunded, 7.25%, 12/1/2027

2,000,000

2,159,240

Pennsylvania, Hospital & Healthcare Revenue, Economic Development Financing Authority, UPMC Health System, Series A, 6.0%, 1/15/2031

750,000

788,917

Philadelphia, Redevelopment Authority Revenue, First Lien Mortgage, Series A, 6.5%, 1/1/2029

603,400

604,378

Westmoreland County, PA, Senior Care Revenue, Industrial Development Authority, Health Care Facilities-Redstone, Series B, Prerefunded, 8.125%, 11/15/2030

1,000,000

1,130,020

5,224,019

Puerto Rico 3.3%

Commonwealth of Puerto Rico, Aqueduct & Sewer Authority Revenue, Series A, 6.0%, 7/1/2038

4,000,000

4,193,440

Rhode Island 1.5%

Rhode Island, Special Assessment Revenue, Series A, 6.125%, 6/1/2032

2,000,000

1,883,180

South Carolina 8.2%

Hardeeville, SC, Assessment Revenue, Anderson Tract Municipal Improvement District, Series A, 7.75%, 11/1/2039

1,000,000

993,430

South Carolina, Jobs Economic Development Authority Revenue, Bon Secours Health System:

Series A, Prerefunded, 5.625%, 11/15/2030

415,000

462,435

Series B, 5.625%, 11/15/2030

1,585,000

1,594,161

South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, Palmetto Health Alliance:

Series C, Prerefunded, 7.0%, 8/1/2030

1,545,000

1,826,744

Series A, Prerefunded, 7.375%, 12/15/2021

1,000,000

1,129,810

South Carolina, Transportation Infrastructure Bank Revenue, Series A, Prerefunded, 5.375%, 10/1/2024 (a)

4,150,000

4,345,050

10,351,630

South Dakota 1.6%

South Dakota, Hospital & Healthcare Revenue, Sioux Valley Hospital, Series E, 5.375%, 11/1/2024

2,000,000

2,033,660

Tennessee 2.7%

Clarksville, TN, Natural Gas Acquisition Corp., Gas Revenue:

5.0%, 12/15/2017

500,000

467,500

5.0%, 12/15/2018

540,000

497,048

Johnson City, TN, Hospital & Healthcare Revenue, Health & Educational Facilities Board Hospital, Series A, Prerefunded, 7.5%, 7/1/2033

2,000,000

2,389,220

3,353,768

Texas 16.5%

Abilene, TX, Senior Care Revenue, Health Facilities Development, Sears Methodist Retirement Facilities, Series A, 5.9%, 11/15/2025

2,500,000

2,354,325

Austin, TX, Bergstrom Landhost Enterprises, Inc., Airport Hotel Project, Series A, 6.413%, 4/1/2027 *

1,975,000

1,412,737

Houston, TX, Higher Education Finance Corp. Revenue, William Marsh Rice University Project, Series A, 2.55% **, 5/15/2048

3,000,000

3,000,000

Houston, TX, Transportation/Tolls Revenue, Special Facilities, Continental Airlines, Inc., AMT, Series E, 6.75%, 7/1/2029

2,000,000

1,610,400

Tarrant County, TX, Hospital & Healthcare Revenue, Health Facilities Development Corp., Prerefunded, 6.7%, 11/15/2030

1,000,000

1,103,330

Texas, Industrial Development Revenue, Waste Disposal Authority, AMT, Series A, 6.1%, 8/1/2024

1,000,000

936,640

Texas, Lower Colorado River Authority Revenue:

Series B, Prerefunded, 6.0%, 5/15/2013 (a)

10,000

10,404

Series B, 6.0%, 5/15/2013 (a)

4,990,000

5,159,161

Travis County, TX, Health Facilities Development Corp., Retirement Facility Revenue, Querencia Barton Creek Project, 5.65%, 11/15/2035

1,250,000

1,069,313

Travis County, TX, Hospital & Healthcare Revenue, Ascension Health Credit, Series A, 6.0%, 11/15/2012 (a)

3,860,000

4,050,375

20,706,685

Virgin Islands 2.5%

Virgin Islands, Sales & Special Tax Revenue, Public Finance Authority, Series A, 6.375%, 10/1/2019

3,000,000

3,159,030

Washington 2.0%

Washington, State Health Care Facilities Authority Revenue, Series C, 5.375%, 8/15/2028 (a)

595,000

567,202

Washington, State Health Care Facilities Authority Revenue, Virginia Mason Medical Center, Series A, 6.125%, 8/15/2037

2,000,000

1,935,520

2,502,722

West Virginia 1.8%

West Virginia, Hospital & Healthcare Revenue, Hospital Finance Authority, Charleston Medical Center:

Series A, Prerefunded, 6.75%, 9/1/2022

390,000

427,963

Prerefunded, 6.75%, 9/1/2022

1,610,000

1,766,717

2,194,680

Wisconsin 0.8%

Wisconsin, Hospital & Healthcare Revenue, Health & Education Facilities Authority, Aurora Health Care, Inc., 6.875%, 4/15/2030

1,000,000

1,046,870

Total Municipal Bonds and Notes (Cost $184,516,176)

187,634,748

Municipal Inverse Floating Rate Notes (b) 15.3%

California 3.4%

San Diego County, CA, Water Authority Revenue, Certificates of Participation, Series 2008-A, 5.0%, 5/1/2027 (a) (c)

2,124,844

2,199,133

San Diego County, CA, Water Authority Revenue, Certificates of Participation, Series 2008-A, 5.0%, 5/1/2028 (a) (c)

1,933,492

2,001,090

Trust: California, Series 2008-1104, 144A, 13.186%, 5/1/2027, Leverage Factor at

purchase date: 4 to 1

4,200,223

Illinois 2.3%

Aurora, IL, Single Family Mortgage Revenue, Series C, AMT, 5.5%, 6/1/2045 (c)

2,920,000

2,923,752

Trust: Aurora, IL, Puttable Floating Option Tax Exempt Receipts, RITES-PA-1499, AMT,

144A, 15.64%, 6/1/2045, Leverage Factor at purchase date: 4 to 1

New York 4.6%

New York, State Dormitory Authority, State Personal Income Tax Revenue, Series A, 5.0%, 3/15/2023 (c)

5,535,000

5,817,638

Trust: New York, State Dormitory Authority Revenues, Secondary Issues, Series 1955-2,

144A, 13.929%, 3/15/2023, Leverage Factor at purchase date: 4 to 1

Tennessee 5.0%

Nashville & Davidson County, TN, Metropolitan Government, 5.0%, 1/1/2024 (c)

5,918,585

6,248,240

Trust: Nashville & Davidson County, TN, Metropolitan Government, Series 2631-1,

144A, 13.547%, 1/1/2024, Leverage Factor at purchase date: 4 to 1

Total Municipal Inverse Floating Rate Notes (Cost $19,042,218)

19,189,853

% of
Net Assets

Value ($)

Total Investment Portfolio (Cost $203,558,394) †

164.7

206,824,601

Other Assets and Liabilities, Net

(9.0)

(11,231,180)

Preferred Shares, at Redemption Value

(55.7)

(70,000,000)

Net Assets Applicable to Common Shareholders

100.0

125,593,421

For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual financial statements.

*

Partial interest paying security. The rate shown represents 95% of the original coupon rate.

**

Variable rate demand notes are securities whose interest rates are reset periodically at market levels. These securities are often payable on demand and are shown at their current rates as of August 31, 2008.

†

The cost for federal income tax purposes was $202,965,716. At August 31, 2008, net unrealized appreciation for all securities based on tax cost was $3,858,885. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $9,918,017 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $6,059,132.

(a)

Bond is insured by one of these companies:

Insurance Coverage

As a % of Total

Investment Portfolio

Ambac Financial Group, Inc.

2.1

Assured Guaranty Corp.

0.2

Financial Guaranty Insurance Company

9.9

Financial Security Assurance, Inc.

5.3

MBIA Corp.

2.2

Radian Asset Assurance, Inc.

0.3

(b)

Securities represent the underlying municipal obligations of inverse floating rate obligations held by the Fund.

(c)

Security forms part of the below tender option bond trust. Principal amount and value shown take into account the leverage factor.

144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

AMT: Subject to alternative minimum tax.

ETM: Bonds bearing the description ETM (escrow to maturity) are collateralized usually by US Treasury securities which are held in escrow and used to pay principal and interest on bonds so designated.

Prerefunded: Bonds which are prerefunded are collateralized usually by US Treasury securities which are held in escrow and used to pay principal and interest on tax-exempt issues and to retire the bonds in full at the earliest refunding date.

RITES: Residual Interest Tax Exempt Security

Valuation Inputs

Investments in

Securities

Level 1

-

Level 2

$ 206,824,601

Level 3

-

Total

$ 206,824,601

ITEM 2.

CONTROLS AND PROCEDURES

(a)          The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.

(b)         There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.

ITEM 3.

EXHIBITS

Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

Registrant:

DWS Strategic Municipal Income Trust

By:

/s/Michael G. Clark

Michael G. Clark

Date:

October 22, 2008

Registrant:

DWS Strategic Municipal Income Trust

By:

/s/Michael G. Clark

Michael G. Clark

Date:

October 22, 2008

By:

/s/Paul Schubert

Paul Schubert