Investment Company Act file number

811-06506

Western Asset Intermediate Muni Fund Inc.

(Exact name of registrant as specified in charter)

125 Broad Street, New York, NY

10004

(Address of principal executive offices)

(Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

300 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

Registrant's telephone number, including area code:

1-800-451-2010

Date of fiscal year end:

December 31

Date of reporting period:

September 30, 2007

ITEM 1.

SCHEDULE OF INVESTMENTS

Face
Amount

Security

Value

MUNICIPAL BONDS — 97.2%

Alabama — 2.9%

$

3,000,000

Alabama State Public School & College Authority, FSA-Insured, 5.125% due 11/1/15 (a)

$

3,088,890

1,225,000

Baldwin County, AL, Board of Education, Capital Outlay School Warrants, AMBAC-Insured,
5.000% due 6/1/20

1,283,543

94,127

Birmingham, AL, Medical Clinic Board Revenue, Baptist Medical Center, 8.300% due
7/1/08 (b)

97,410

1,000,000

Saraland, AL, GO, MBIA-Insured, 5.250% due 1/1/15

1,058,000

Total Alabama

5,527,843

Alaska — 1.6%

1,000,000

Alaska Industrial Development & Export Authority Revenue, Williams Lynxs
Alaska Cargo Port LLC, 8.000% due 5/1/23 (c)

1,077,990

500,000

Anchorage, AK, GO, Refunding, FGIC-Insured, 6.000% due 10/1/14

569,970

1,250,000

North Slope Boro, AK, Refunding, Series A, MBIA-Insured, 5.000% due 6/30/15

1,351,463

Total Alaska

2,999,423

Arizona — 0.3%

Maricopa County, AZ, Hospital Revenue:

15,000

Samaritan Health Service, 7.625% due 1/1/08 (b)

15,150

444,000

St. Lukes Medical Center, 8.750% due 2/1/10 (b)

472,074

Total Arizona

487,224

Arkansas — 1.4%

1,500,000

Arkansas State Development Finance Authority Hospital Revenue, Washington Regional
Medical Center, Call 2/1/10 @ 100, 7.000% due 2/1/15 (d)

1,613,145

1,000,000

Warren County, AR, Solid Waste Disposal Revenue, Potlatch Corp. Project, 7.000%
due 4/1/12 (c)

1,060,240

Total Arkansas

2,673,385

California — 3.3%

1,500,000

Barona, CA, Band of Mission Indians, GO, 8.250% due 1/1/20

1,534,020

3,000,000

California State Economic Recovery, GO, Series A, 5.000% due 7/1/17

3,129,690

10,000

Loma Linda, CA, Community Hospital Corp. Revenue, First Mortgage, 8.000%
due 12/1/08 (b)

10,278

905,000

Los Angeles, CA, COP, Hollywood Presbyterian Medical Center, INDLC-Insured, 9.625%
due 7/1/13 (b)

1,065,221

290,000

San Francisco, CA, Airport Improvement Corp. Lease Revenue, United Airlines Inc., 8.000%
due 7/1/13 (b)

327,111

90,000

San Leandro, CA, Hospital Revenue, Vesper Memorial Hospital, 11.500% due 5/1/11 (b)

104,262

Total California

6,170,582

Colorado — 5.2%

1,860,000

Broomfield, CO, COP, Open Space Park & Recreation Facilities, AMBAC-Insured, 5.500%
due 12/1/20

1,953,242

Colorado Educational & Cultural Facilities Authority Revenue Charter School:

1,000,000

Bromley East Project, Series A, Call 9/15/11 @ 100, 7.000% due 9/15/20 (d)

1,121,380

1,155,000

Bromley School Project, XLCA-Insured, 5.125% due 9/15/20

1,232,985

1,350,000

Refunding & Improvement, University Lab School, XLCA-Insured, 5.250% due 6/1/24

1,437,993

500,000

University Lab School Project, Call 6/1/11 @ 100, 6.125% due 6/1/21 (d)

543,450

710,000

Denver, CO, Health & Hospital Authority, Series A, Call 12/01/11 @ 100, 6.250%
due 12/1/16 (d)

780,049

Face 
Amount

Security

Value

Colorado — 5.2% (continued)

$

1,765,000

Pueblo, CO, Bridge Waterworks Water Revenue, Improvement Series A, FSA-Insured, Call 11/1/10 @ 100, 6.000% due 11/1/14 (d)

$

1,891,568

750,000

SBC Metropolitan District, CO, GO, ACA-Insured, 5.000% due 12/1/25

735,915

Total Colorado

9,696,582

Connecticut — 2.2%

2,000,000

Connecticut State HEFA Revenue, Bristol Hospital, Series B, 5.500% due 7/1/21

2,085,820

1,855,000

Connecticut State Special Obligation Parking Revenue, Bradley International Airport, Series A, ACA-Insured, 6.375% due 7/1/12 (c)

1,962,571

Total Connecticut

4,048,391

Florida — 3.9%

105,000

Lee County, FL, Southwest Florida Regional Airport Revenue, MBIA-Insured, 8.625% due 10/1/09 (b)

109,961

3,250,000

Lee, FL, Memorial Health System, Hospital Revenue, Series A, FSA-Insured, 5.750% due 4/1/14

3,513,770

1,260,000

Old Palm Community Development District, FL, Palm Beach Gardens, Series B, 5.375% due 5/1/14

1,233,691

Orange County, FL, Health Facilities Authority Revenue:

505,000

First Mortgage Healthcare Facilities, 8.750% due 7/1/11

530,422

1,500,000

Hospital Adventist Health Systems, Call 11/15/12 @ 100, 6.250% due 11/15/24 (d)

1,680,450

250,000

Southern Adventist Hospital, Adventist Health Systems, 8.750% due 10/1/09 (b)

262,130

Total Florida

7,330,424

Georgia — 9.5%

970,000

Athens, GA, Housing Authority Student Housing Lease Revenue, University of Georgia East Campus, AMBAC-Insured, 5.250% due 12/1/23

1,023,204

650,000

Chatham County, GA, Hospital Authority Revenue, Hospital Memorial Health Medical Center, Series A, 6.000% due 1/1/17

680,921

Fulton County, GA, Development Authority Revenue, Morehouse College Project, AMBAC-Insured:

340,000

5.000% due 12/1/18

368,142

560,000

5.000% due 12/1/19

602,476

635,000

5.000% due 12/1/20

679,888

1,000,000

Gainesville, GA, Water & Sewer Revenue, FSA-Insured, Call 11/15/11 @ 100, 5.375% due 11/15/20 (d)

1,070,080

Georgia Municipal Electric Authority:

3,000,000

Power Revenue, Refunding, Series A, FSA-Insured, 5.000% due 1/1/18

3,140,490

500,000

Power System Revenue, Series X, 6.500% due 1/1/12

529,005

1,000,000

Griffin, GA, Combined Public Utilities Revenue, Refunding & Improvement, AMBAC-Insured, 5.000% due 1/1/21

1,050,100

6,000,000

Main Street Natural Gas Inc., 5.500% due 9/15/24

6,375,420

2,120,000

Metropolitan Atlanta Rapid Transit Georgia Sales Tax Revenue, Series E, 7.000% due 7/1/11 (b)

2,310,736

Total Georgia

17,830,462

Illinois — 3.5%

535,000

Bourbonnais, IL, Industrial Development Revenue, Refunding Kmart Corp. Project, 6.600% due 10/1/06 (e)

13,375

1,500,000

Chicago, IL, O’Hare International Airport, Revenue, Refunding Bonds, Lien A-2, FSA-Insured, 5.750% due 1/1/19 (c)

1,623,870

1,000,000

Cicero, IL, Tax Increment, Series A, XLCA-Insured, 5.250% due 1/1/21

1,061,090

970,000

Glendale Heights, IL, Hospital Revenue, Refunding Glendale Heights Project, Series B, 7.100% due 12/1/15 (b)

1,099,282

Face 
Amount

Security

Value

Illinois — 3.5% (continued)

$

430,000

Illinois Development Finance Authority, Chicago Charter School Foundation Project A, 5.250% due 12/1/12 (b)

$

444,607

265,000

Illinois Health Facilities Authority Revenue, Methodist Medical Center of Illinois Project, 9.000% due 10/1/10 (b)

283,449

1,310,000

Kane County, IL, GO, FGIC-Insured, 5.500% due 1/1/14

1,399,237

270,000

Mount Veron, IL, Elderly Housing Corp., First Lien Revenue, 7.875% due 4/1/08

271,658

1,000,000

Will County, IL, GO, School District North 122 New Lenox, Capital Appreciation Refunding School, Series D, FSA-Insured, zero coupon bond to yield 5.188% due 11/1/24

457,630

Total Illinois

6,654,198

Indiana — 0.6%

800,000

Ball State University, Indiana University Revenue, Student Fee, Series K, FGIC-Insured, 5.750% due 7/1/20

859,920

185,000

Madison County, IN, Hospital Authority Facilities Revenue, Community Hospital of Anderson Project, 9.250% due 1/1/10 (b)

196,995

Total Indiana

1,056,915

Iowa — 1.1%

1,000,000

Iowa Finance Authority, Health Care Facilities Revenue, Genesis Medical Center, 6.250% due 7/1/20

1,051,480

835,000

Muscatine, IA, Electric Revenue, 9.700% due 1/1/13 (b)

964,809

Total Iowa

2,016,289

Kansas — 1.2%

2,245,000

Johnson County, KS, Union School District, Series A, Call 10/1/09 @ 100, 5.125% due
10/1/20 (d)

2,316,436

Louisiana — 1.1%

245,000

Louisiana Public Facilities Authority Hospital Revenue, Southern Baptist Hospital Inc. Project, Aetna-Insured, 8.000% due 5/15/12 (b)

270,088

1,690,000

Monroe, LA, Sales & Use Tax Revenue, FGIC-Insured, Call 7/1/12 @ 102, 5.625% due
7/1/25 (d)

1,868,042

Total Louisiana

2,138,130

Maryland — 1.7%

1,000,000

Maryland State Health & Higher EFA Revenue, Refunding Mercy Medical Center, FSA-Insured, 6.500% due 7/1/13

1,082,300

2,000,000

Montgomery County, MD, GO, 5.250% due 10/1/14

2,141,420

Total Maryland

3,223,720

Massachusetts — 4.8%

485,000

Boston, MA, Water & Sewer Commission Revenue, 10.875% due 1/1/09 (b)

509,866

1,130,000

Lancaster, MA, GO, AMBAC-Insured, 5.375% due 4/15/17

1,215,428

Massachusetts State DFA Revenue:

500,000

Curry College, Series A, ACA-Insured, 6.000% due 3/1/20

514,260

370,000

VOA Concord, Series A, GNMA-Collateralized, Call 10/20/11 @ 105, 6.700% due
10/20/21 (d)

429,614

Massachusetts State HEFA Revenue:

Caritas Christi Obligation, Series B:

2,000,000

6.500% due 7/1/12

2,129,960

835,000

6.750% due 7/1/16

915,152

1,000,000

Milford-Whitinsville Regional Hospital, Series D, Call 7/15/12 @ 101, 6.500% due
7/15/23 (d)

1,132,390

980,000

Winchester Hospital, Series E, Call 7/1/10 @ 101, 6.750% due 7/1/30 (d)

1,056,067

Face 
Amount

Security

Value

Massachusetts — 4.8% (continued)

$

995,000

Massachusetts State Industrial Finance Agency Assisted Living Facility Revenue, Arbors at Amherst Project, GNMA-Collateralized, 5.750% due 6/20/17 (c)

$

1,018,552

Total Massachusetts

8,921,289

Michigan — 3.6%

1,775,000

Carrier Creek, MI, Drain District No. 326, AMBAC-Insured, 5.000% due 6/1/24

1,861,176

1,000,000

Jenison, MI, Public Schools GO, Building and Site, FGIC-Insured, 5.500% due 5/1/20

1,069,910

1,000,000

Michigan State Hospital Finance Authority Revenue, Oakwood Obligated Group, 5.500% due
11/1/18

1,055,890

Michigan State, Hospital Finance Authority Revenue, Refunding, Hospital Sparrow Obligated:

500,000

5.000% due 11/15/12

520,090

1,190,000

5.000% due 11/15/14

1,245,002

1,000,000

Walled Lake, MI, Consolidated School District, MBIA-Insured, 5.000% due 5/1/22

1,045,490

Total Michigan

6,797,558

Missouri — 1.5%

1,000,000

Hazelwood, MO, School District, Missouri Direct Deposit Program, Series A, FGIC-Insured, 5.000% due 3/1/23

1,052,410

405,000

Lees Summit, MO, IDA Health Facilities Revenue, John Knox Village, 5.750% due 8/15/11 (b)

434,334

1,000,000

Missouri State Environmental Improvement & Energy Resource Authority, Water Pollution Control, State Revolving Funds Program, Series C, 5.250% due 7/1/18

1,111,010

25,000

Missouri State Housing Development Community Mortgage Revenue, Series C, GNMA/FNMA-Collateralized, 7.450% due 9/1/27 (c)

25,561

225,000

Nevada, MO, Waterworks Systems Revenue, AMBAC-Insured, 10.000% due 10/1/10 (b)

247,471

Total Missouri

2,870,786

Nebraska — 1.2%

NebHELP Inc. Nebraska Revenue:

1,200,000

Series A-5A, MBIA-Insured, 6.200% due 6/1/13 (c)

1,215,564

1,000,000

Series A-6, MBIA-Insured, 6.450% due 6/1/18 (c)

1,060,460

Total Nebraska

2,276,024

Nevada — 0.3%

535,000

Henderson, NV, Health Care Facilities Revenue, Unrefunded Balance, Catholic West, Series A, 6.200% due 7/1/09

550,328

New Hampshire — 0.4%

765,000

New Hampshire HEFA, Covenant Healthcare System, 6.500% due 7/1/17

833,498

New Jersey — 0.1%

130,000

Ringwood Borough, NJ, Sewer Authority Special Obligation, 9.875% due 7/1/13 (b)

152,771

New Mexico — 1.5%

1,100,000

Bernalillo County, NM, Gross Receipts Tax Revenue, AMBAC-Insured, 5.250% due 10/1/18

1,215,159

1,415,000

New Mexico Finance Authority Revenue, Subordinated Lien, Public Project Revolving Fund, Series A, MBIA-Insured, 5.000% due 6/15/19

1,505,192

Total New Mexico

2,720,351

Face 
Amount

Security

Value

New York — 5.3%

$

730,000

New York City, NY, IDA, Civic Facilities Revenue, Community Hospital Brooklyn, 6.875% due 11/1/10

$

740,578

3,025,000

New York State Dormitory Authority, New York & Presbyterian Hospital, FSA-Insured, 5.250% due 2/15/24

3,184,962

1,760,000

New York State Dormitory Authority Revenue, Mental Health Services Facilities, 5.000% due 2/15/18

1,871,249

2,000,000

New York State Thruway Authority, Highway & Bridge, Trust Fund Revenue, Series B, AMBAC-Insured, 5.000% due 4/1/21

2,110,480

2,000,000

Tobacco Settlement Financing Corp., New York, Asset-Backed, Series C-1, 5.500% due 6/1/14

2,057,700

Total New York

9,964,969

North Carolina — 1.1%

1,000,000

North Carolina Eastern Municipal Power Agency, Power System Revenue, Series D, 6.450% due 1/1/14

1,058,730

925,000

North Carolina Municipal Power Agency No. 1, Catawba Electricity Revenue, 10.500% due 1/1/10 (b)

999,925

Total North Carolina

2,058,655

Ohio — 7.5%

2,000,000

American Municipal Power-Ohio Inc., Electricity Purchase Revenue, Series A, 5.000% due 2/1/13

2,075,560

1,370,000

Cleveland, OH, Waterworks Revenue, Series K, Call 1/1/12 @ 100, 5.250% due 1/1/21 (d)

1,459,269

970,000

Cuyahoga County, OH, Hospital Facilities Revenue, Canton Inc. Project, 6.750% due 1/1/10

999,100

1,855,000

Highland, OH, Local School District, School Improvement, FSA-Insured, Call 12/1/11 @ 100, 5.750% due 12/1/19 (d)

2,011,488

1,000,000

Kettering, OH, City School District, School Improvement, FSA-Insured, 5.000% due 12/1/19

1,057,220

Lake County, OH, Hospital Improvement Revenue:

165,000

Lake County Memorial Hospital Project, 8.625% due 11/1/09 (b)

173,282

65,000

Ridgecliff Hospital Project, 8.000% due 10/1/09 (b)

67,652

Ohio State:

1,500,000

Air Quality Development Authority Revenue, Cleveland Pollution Control, Series A, 6.000% due 12/1/13

1,519,170

3,010,000

GO, Conservation Project, Series A, 5.250% due 9/1/13

3,172,931

Water Development Authority Revenue:

1,280,000

Refunding, Safe Water Service, 9.375% due 12/1/10 (b)

1,362,368

175,000

Safe Water, Series 3, 9.000% due 12/1/10 (b)

184,730

Total Ohio

14,082,770

Oklahoma — 0.6%

165,000

Tulsa, OK, Housing Assistance Corp. MFH Revenue, 7.250% due 10/1/07 (c)

165,000

Tulsa, OK, Municipal Airport Trust Revenue, Refunding American Airlines,
Series B:

500,000

5.650% due 12/1/08 (c)(f)(g)

499,955

500,000

6.000% due 12/1/08 (c)(f)(g)

504,015

Total Oklahoma

1,168,970

Oregon — 0.8%

335,000

Klamath Falls, OR, International Community Hospital Authority Revenue, Merle West Medical Center Project, 8.000% due 9/1/08 (b)

348,172

1,035,000

Wasco County, OR, Solid Waste Disposal Revenue, Waste Connections Inc. Project, 7.000% due 3/1/12 (c)

1,063,897

Total Oregon

1,412,069

Face 
Amount

Security

Value

Pennsylvania — 5.4%

$

630,000

Conneaut, PA, School District GO, AMBAC-Insured, 9.500% due 5/1/12 (b)

$

702,942

1,000,000

Harrisburg, PA, Parking Authority Parking Revenue, FSA-Insured, 5.500% due 5/15/20

1,066,960

1,365,000

Northampton County, PA, IDA Revenue, Mortgage Moravian Hall Square Project, Radian-Insured, 5.500% due 7/1/19

1,421,770

1,000,000

Pennsylvania State IDA Revenue, Economic Development, AMBAC-Insured, 5.500% due 7/1/21

1,076,950

1,000,000

Philadelphia, PA, Gas Works Revenue, 7th Series-1998, General Ordinance, AMBAC-Insured, 5.000% due 10/1/17

1,084,290

30,000

Philadelphia, PA, Hospital Authority Revenue, Thomas Jefferson University Hospital, 7.000% due 7/1/08 (b)

30,774

1,000,000

Philadelphia, PA, School District, Series A, FSA-Insured, Call 2/1/12 @ 100, 5.500%
due 2/1/23 (d)

1,076,290

2,000,000

Philadelphia, PA, Water & Wastewater, Series B, FGIC-Insured, 5.250% due 11/1/14

2,148,000

1,350,000

Pittsburgh, PA, School District GO, FSA-Insured, 5.375% due 9/1/16

1,505,088

Total Pennsylvania

10,113,064

Rhode Island — 0.6%

1,000,000

Central Falls, RI, GO, Radian-Insured, 5.875% due 5/15/15

1,044,400

South Carolina — 3.2%

1,445,000

Charleston, SC, Waterworks & Sewer Revenue, 5.250% due 1/1/16

1,525,631

Greenville County, SC, School District Installment Purchase:

2,000,000

Refunding, 5.875% due 12/1/19 (d)

2,229,100

2,000,000

Revenue, 6.000% due 12/1/21 (d)

2,240,760

Total South Carolina

5,995,491

South Dakota — 1.4%

2,400,000

Minnehana County, SD, GO, Limited Tax Certificates, Call 12/1/10 @ 100, 5.625%
due 12/1/20 (d)

2,538,696

Tennessee — 0.3%

385,000

Jackson, TN, Water & Sewer Revenue, 7.200% due 7/1/12 (b)

414,926

210,000

McMinnville, TN, Housing Authority Revenue, Refunding First Mortgage Beersheba Heights, 6.000% due 10/1/09

213,337

Total Tennessee

628,263

Texas — 12.9%

5,140,000

Austin Texas Electirc Utility System Revenue, Refunding, Series A, AMBAC-Insured, 5.000% due 11/15/19

5,480,628

2,000,000

Brazos River, TX, Harbor Navigation District, BASF Corp. Project, 6.750% due 2/1/10

2,131,040

2,000,000

Dallas, TX, Area Rapid Transit Sales Tax Revenue, Senior Lien, AMBAC-Insured, Call 12/1/11 @ 100, 5.375% due 12/1/16 (d)

2,139,940

Dallas-Fort Worth, TX:

1,500,000

International Airport Facility, Improvement Corp. Revenue, Refunding, American Airlines, Series C, 6.150% due 11/1/07 (c)(f)

1,501,095

1,000,000

International Airport Revenue, Refunding, Series B, FSA-Insured, 5.500% due 11/1/20 (c)

1,065,610

El Paso County, TX, Housing Finance Corp.:

265,000

La Plaza Apartments, Subordinated Series C, 8.000% due 7/1/30

271,429

360,000

MFH Revenue, Series A, American Village Communities, 6.250% due 12/1/24

371,632

El Paso, TX, Water & Sewer Revenue, Refunding & Improvement, Series A,
FSA-Insured:

Face 
Amount

Security

Value

Texas — 12.9% (continued)

$

45,000

6.000% due 3/1/15

$

49,194

955,000

Call 3/1/12 @ 100, 6.000% due 3/1/15 (d)

1,048,494

2,000,000

Fort Worth, TX, Water & Sewer Revenue, Call 2/15/12 @ 100, 5.625% due 2/15/17 (d)

2,162,200

1,000,000

Harris County, TX, Hospital District Revenue, MBIA-Insured, Call 8/15/10 @ 100, 6.000% due 2/15/15 (d)

1,067,010

5,000,000

Houston, TX Independent School District, GO, Refunding Ltd., Tax Series A, PSF-GTD, 5.000% due 8/15/17 (a)

5,416,800

1,000,000

Southwest Higher Education Authority Inc., Southern Methodist University Project, AMBAC-Insured, Call 10/1/12 @ 100, 5.500% due 10/1/19 (d)

1,087,100

180,000

Tarrant County, TX, Hospital Authority Revenue, Adventist Health System-Sunbelt, 10.250% due 10/1/10 (b)

197,041

175,000

Texas State Department Housing Community Affairs Home Mortgage Revenue, RIBS
Series C-2, GNMA/FNMA/FHLMC-Collateralized, 9.267% due 11/1/07 (c)(h)

176,298

Total Texas

24,165,511

Utah — 1.7%

1,580,000

Salt Lake & Sandy, UT, Metropolitan Water District Revenue, Series A, AMBAC-Insured, 5.000% due 7/1/24

1,662,729

Spanish Fork City, UT, Water Revenue, FSA-Insured:

1,135,000

5.500% due 6/1/16

1,220,670

350,000

Call 6/1/12 @ 100, 5.500% due 6/1/16 (d)

378,595

Total Utah

3,261,994

Washington — 2.4%

1,000,000

Clark County, WA, School District No. 117 Camas, GO, FSA-Insured, 5.000% due 12/1/18

1,079,300

1,250,000

Cowlitz County, WA, School District, No. 122 Longview, FSA-Insured, Call 12/1/11 @ 100, 5.500% due 12/1/19 (d)

1,343,463

2,000,000

Energy Northwest Washington Electric Revenue, Project No. 3, Series A, FSA-Insured, 5.500% due 7/1/18

2,132,700

Total Washington

4,555,463

West Virginia — 0.0%

70,000

Cabell Putnam & Wayne Counties, WV, Single - Family Residence Mortgage Revenue, FGIC-Insured, 7.375% due 4/1/10 (b)

72,860

Wisconsin — 1.1%

2,000,000

La Crosse, WI, Resource Recovery Revenue, Refunding Bonds, Northern States Power Co. Project, Series A, 6.000% due 11/1/21 (c)

2,115,140

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS
(Cost — $178,045,281)

182,470,924

SHORT-TERM INVESTMENTS — 2.8%

Florida — 2.3%

4,330,000

Sarasota County, FL, Public Hospital Board Revenue, Sarasota Memorial Hospital, Series A, AMBAC-Insured, 4.050%, 10/1/07 (i)

4,330,000

100,000

University Athletic Association Inc., Refunding, LOC-SunTrust Bank, 4.050%, 10/1/07 (i)

100,000

Total Florida

4,430,000

Nevada — 0.1%

200,000

Las Vegas Valley, NV, Water District, Water Improvement, Series B, SPA-Dexia Credit Local, 4.050%, 10/1/07 (i)

200,000

Wisconsin — 0.4%

700,000

Wisconsin State, HEFA Revenue, Jewish Home and Care Center, LOC-JPMorgan Chase, 3.930%, 10/4/07 (i)

700,000

TOTAL SHORT-TERM INVESTMENTS
(Cost — $5,330,000)

5,330,000

TOTAL INVESTMENTS — 100.0% (Cost — $183,375,281#)

187,800,924

(a)

All or a portion of this security is segregated for extended settlements.

(b)

Bonds are escrowed to maturity by government securities and/or U.S. government agency securities and are considered by the Manager to be triple-A rated even if issuer has not applied for new ratings.

(c)

Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax (“AMT”).

(d)

Pre-Refunded bonds are escrowed with government obligations and/or government agency securities and are considered by the Manager to be triple-A rated even if issuer has not applied for new ratings.

(e)

Security is currently in default.

(f)

Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2007.

(g)

Maturity date shown represents the mandatory tender date.

(h)

Residual interest bonds—coupon varies inversely with level of short-term tax-exempt interest rates.

(i)

Variable rate demand obligations have a demand feature under which the Fund can tender them back to the issuer on no more than 7 days notice. Date shown is the date of the next interest rate change.

#

Aggregate cost for federal income tax purposes is substantially the same.

Abbreviations used in this schedule:

ACA - American Capital Assurance

AMBAC - Ambac Assurance Corporation - Insured Bonds

COP - Certificate of Participation

DFA - Development Finance Agency

EFA - Educational Facilities Authority

FGIC - Financial Guaranty Insurance Company - Insured Bonds

FHLMC - Federal Home Loan Mortgage Corporation

FNMA - Federal National Mortgage Association

FSA - Financial Security Assurance - Insured Bonds

GNMA - Government National Mortgage Association

GO - General Obligation

GTD - Guaranteed

HEFA - Health & Educational Facilities Authority

IDA - Industrial Development Authority

INDLC - Industrial Indemnity Company

LOC - Letter of Credit

MBIA - Municipal Bond Investors Assurance Corporation - Insured Bonds

MFH - Multi-Family Housing

PSF - Permanent School Fund

RIBS - Residual Interest Bonds

Radian - Radian Assets Assurance

SPA - Standby Bond Purchase Agreement

XLCA - XL Capital Assurance Inc.

Pre-Refunded

19.3

%

Hospitals

14.6

General Obligation

14.3

Utilities

14.1

Education

7.7

Escrowed to Maturity

7.4

Transportation

5.5

Pollution Control

4.2

Water & Sewer

2.8

Miscellaneous

2.6

Life Care Systems

1.7

Tax Allocation

1.2

Industrial Development

1.2

Tobacco

1.1

Public Facilities

1.1

Housing: Multi-Family

0.6

Solid Waste

0.6

100.0

%

AAA/Aaa

56.6

%

AA/Aa

19.4

A

5.0

BBB/Baa

8.7

BB/Ba

1.3

B/B

0.5

CCC/Caa

0.8

C

0.1

A-1/VMIG1

3.7

NR

3.9

100.0

%

AAA

—

Bonds rated “AAA” have the highest rating assigned by Standard & Poor’s. Capacity to pay interest and repay principal is extremely strong.

AA

—

Bonds rated “AA” have a very strong capacity to pay interest and repay principal and differ from the highest rated issues only in a small degree.

A

—

Bonds rated “A” have a strong capacity to pay interest and repay principal although they are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher rated categories.

BBB

—

Bonds rated “BBB” are regarded as having an adequate capacity to pay interest and repay principal. Whereas they normally exhibit adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for bonds in this category than in higher rated categories.

BB, B,

CCC,

CC and C

—

Bonds rated “BB”, “B”, “CCC”, “CC” and “C” are regarded, on balance, as predominantly speculative with respect to capacity to pay interest and repay principal in accordance with the terms of the obligation. “BB” represents the lowest degree of speculation and “C” the highest degree of speculation. While such bonds will likely have some quality and protective characteristics, these are outweighed by large uncertainties or major risk exposures to adverse conditions.

D

—

Bonds rated “D” are in default and payment of interest and/or repayment of principal is in arrears.

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

Aaa

—

Bonds rated “Aaa” are judged to be of the best quality. They carry the smallest degree of investment risk and are generally referred to as “gilt edge.” Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes can be visualized as most unlikely to impair the fundamentally strong position of such issues.

Aa

—

Bonds rated “Aa” are judged to be of high quality by all standards. Together with the “Aaa” group they comprise what are generally known as high grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in “Aaa” securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than in “Aaa” securities.

A

—

Bonds rated “A” possess many favorable investment attributes and are to be considered as upper medium grade obligations. Factors giving security to principal and interest are considered adequate but elements may be present which suggest a susceptibility to impairment some time in the future.

Baa

—

Bonds rated “Baa” are considered as medium grade obligations, i.e., they are neither highly protected nor poorly secured. Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well.

Ba

—

Bonds rated “Ba” are judged to have speculative elements; their future cannot be considered as well assured. Often the protection of interest and principal payments may be very moderate and therefore

not well safeguarded during both good and bad times over the future. Uncertainty of position characterizes bonds in this class.

B

—

Bonds rated “B” generally lack characteristics of desirable investments. Assurance of interest and principal payments or of maintenance of other terms of the contract over any long period of time may be small.

Caa

—

Bonds rated “Caa” are of poor standing. These may be in default, or present elements of danger may exist with respect to principal or interest.

Ca

—

Bonds rated “Ca” represent obligations which are speculative in a high degree. Such issues are often in default or have other marked short-comings.

C

—

Bonds rated “C” are the lowest class of bonds and issues so rated can be regarded as having extremely poor prospects of ever attaining any real investment standing.

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

AAA

—

Bonds rated “AAA” have the highest rating assigned by Fitch. Capacity to pay interest and repay principal is extremely strong.

AA

—

Bonds rated “AA” have a very strong capacity to pay interest and repay principal and differ from the highest rated issues only in a small degree.

A

—

Bonds rated “A” have a strong capacity to pay interest and repay principal although they are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher rated categories.

BBB

—

Bonds rated “BBB” are regarded as having an adequate capacity to pay interest and repay principal. Whereas they normally exhibit adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for bonds in this category than in higher rated categories.

BB, B,

CCC

and CC

—

Bonds rated “BB”, “B”, “CCC” and “CC” are regarded, on balance, as predominantly speculative with respect to capacity to pay interest and repay principal in accordance with the terms of the obligation. “BB” represents a lower degree of speculation than “B”, and “CC” the highest degree of speculation. While such bonds will likely have some quality and protective characteristics, these are outweighed by large uncertainties or major risk exposures to adverse conditions.

NR

—

Indicates that the bond is not rated by Standard & Poor’s, Moody’s or Fitch.

Short-Term Security Ratings (unaudited)

SP-1

—

Standard & Poor’s highest rating indicating very strong or strong capacity to pay principal and interest; those issues determined to possess overwhelming safety characteristics are denoted with a plus (+) sign.

A-1

—

Standard & Poor’s highest commercial paper and variable-rate demand obligation (VRDO) rating indicating that the degree of safety regarding timely payment is either overwhelming or very strong; those issues determined to possess overwhelming safety characteristics are denoted with a plus (+) sign.

VMIG 1

—

Moody’s highest rating for issues having a demand feature— VRDO.

MIG1

—

Moody’s highest rating for short-term municipal obligations.

P-1

—

Moody’s highest rating for commercial paper and for VRDO prior to the advent of the VMIG 1 rating.

F1

—

Fitch’s highest rating indicating the strongest capacity for timely payment of financial commitments; those issues determined to possess overwhelming strong credit feature are denoted with a plus (+) sign.

Gross unrealized appreciation

$

5,291,814

Gross unrealized depreciation

(866,171

)

Net unrealized appreciation

$

4,425,643

ITEM 2.

CONTROLS AND PROCEDURES.

(a)

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

(b)

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

ITEM 3.

EXHIBITS.

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

Western Asset Intermediate Muni Fund Inc.

By

/s/ R. Jay Gerken

R. Jay Gerken

Chief Executive Officer

Date:  November 28, 2007

By

/s/ R. Jay Gerken

R. Jay Gerken

Chief Executive Officer

Date:  November 28, 2007

By

/s/ Kaprel Ozsolak

Kaprel Ozsolak

Chief Financial Officer

Date:  November 28, 2007