c56066_nq.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

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 811-10331

Name of Fund: BlackRock California Municipal Income Trust (BFZ)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock California Municipal Income Trust, 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 07/31/2009

Date of reporting period: 08/01/2008 – 10/31/2008

Item 1 – Schedule of Investments

BlackRock California Municipal Income Trust  
Schedule of Investments October 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)
    Par    
  Municipal Bonds (000)   Value
California - 124.9% Bay Area Toll Authority, California, Toll Bridge Revenue Refunding Bonds      
  (San Francisco Bay Area), Series F1, 5%, 4/01/34 $   2,500   $   2,265,825
  California County Tobacco Securitization Agency, Tobacco Revenue Bonds      
  (Stanislaus County Tobacco Funding Corporation), Series A, 5.875%,      
  6/01/43 5,000   3,581,800
  California Educational Facilities Authority Revenue Bonds (Stanford      
  University), Series Q, 5.25%, 12/01/32 2,000   1,986,380
  California HFA, Home Mortgage Revenue Bonds, VRDN, AMT, Series P,      
  8.50%, 2/01/27 (a)(b)(c) 15,000   15,000,000
  California Health Facilities Financing Authority Revenue Bonds (Sutter      
  Health), Series A, 5.25%, 11/15/46 5,000   4,100,650
  California Infrastructure and Economic Development Bank Revenue Bonds      
  (J. David Gladstone Institute Project), 5.25%, 10/01/34 15,250   13,251,640
  California Infrastructure and Economic Development Bank Revenue Bonds      
  (Kaiser Hospital Assistance I-LLC), Series A, 5.55%, 8/01/31 13,500   11,721,240
  California Pollution Control Financing Authority, Solid Waste Disposal      
  Revenue Bonds (Waste Management, Inc. Project), AMT, Series C, 5.125%,      
  11/01/23 2,290   1,634,717
  California State University, Systemwide Revenue Bonds, Series A, 5%,      
  11/01/39 (d) 2,400   2,117,400
  California State, Various Purpose, GO, 5.50%, 11/01/33 10,000   9,632,100
  California Statewide Communities Development Authority Revenue Bonds      
  (Catholic Healthcare West), Series B, 5.50%, 7/01/30 3,000   2,685,570
  California Statewide Communities Development Authority Revenue Bonds      
  (Catholic Healthcare West), Series E, 5.50%, 7/01/31 2,000   1,772,940
  California Statewide Communities Development Authority Revenue Bonds      
  (Daughters of Charity National Health System), Series A, 5.25%, 7/01/30 4,000   2,888,720
  California Statewide Communities Development Authority Revenue Bonds      
  (Sutter Health), Series B, 5.625%, 8/15/42 10,000   8,894,500
  Calleguas-Las Virgenes, California, Public Financing Authority Revenue      
  Bonds (Calleguas Municipal Water District Project), Series A, 5.125%,      
  7/01/32 (c)(e) 5,475   4,962,869
  Chino Basin, California, Desalter Authority, Revenue Refunding Bonds,      
  Series A, 5%, 6/01/35 (f) 5,275   4,739,166
  Chula Vista, California, IDR (San Diego Gas and Electric Company), AMT,      
  Series B, 5%, 12/01/27 5,065   3,975,569
  Chula Vista, California, IDR (San Diego Gas and Electric Company), AMT,      
  Series D, 5%, 12/01/27 4,395   3,449,679
  Eastern Municipal Water District, California, Water and Sewer, COP,      
  Series H, 5%, 7/01/33 5,355   4,726,055
 
Portfolio Abbreviations      
To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the list below.
         
AMT   Alternative Minimum Tax (subject to)   IDR   Industrial Development Revenue Bonds
COP   Certificates of Participation   M/F   Multi-Family
GO   General Obligation Bonds   VRDN   Variable Rate Demand Notes
HFA   Housing Finance Agency        

1

BlackRock California Municipal Income Trust  
Schedule of Investments October 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)
    Par    
  Municipal Bonds (000)   Value
  Elk Grove, California, Unified School District, Special Tax Bonds      
  (Community Facilities District Number 1), 5.60%, 12/01/29 (g)(h) $   7,485   $1,754,709
  Elk Grove, California, Unified School District, Special Tax Bonds      
  (Community Facilities District Number 1), 5.599%, 12/01/30 (g)(h) 7,485   1,631,056
  Elk Grove, California, Unified School District, Special Tax Bonds      
  (Community Facilities District Number 1), 5.601%, 12/01/31 (g)(h) 7,485   1,512,195
  Foothill/Eastern Corridor Agency, California, Toll Road Revenue Refunding      
  Bonds, 5.374%, 7/15/26 (i) 5,000   4,436,000
  Foothill/Eastern Corridor Agency, California, Toll Road Revenue Refunding      
  Bonds, 6.10%, 1/15/33 (g) 5,000   695,100
  Foothill/Eastern Corridor Agency, California, Toll Road Revenue Refunding      
  Bonds, 6.106%, 1/15/34 (g) 5,000   640,700
  Foothill/Eastern Corridor Agency, California, Toll Road Revenue Refunding      
  Bonds, 6.199%, 1/15/35 (g) 13,445   1,576,023
  Foothill/Eastern Corridor Agency, California, Toll Road Revenue Refunding      
  Bonds, 6.101%, 1/15/38 (g) 1,000   90,180
  Foothill/Eastern Corridor Agency, California, Toll Road Revenue Refunding      
  Bonds, 5.75%, 1/15/40 10,030   7,805,847
  Golden State Tobacco Securitization Corporation of California, Tobacco      
  Settlement Revenue Bonds, Series A-1, 6.625%, 6/01/13 (j) 2,000   2,246,260
  Huntington Beach, California, Union High School District, GO (Election of      
  2004), 5.02%, 8/01/33 (c)(e)(g) 5,000   1,020,000
  Irvine, California, Mobile Home Park Revenue Bonds (Meadows Mobile      
  Home Park), Series A, 5.70%, 3/01/28 4,965   3,948,863
  Kaweah Delta Health Care District, California, Revenue Refunding Bonds,      
  6%, 8/01/12 (j) 7,700   8,645,868
  Lathrop, California, Financing Authority Revenue Bonds (Water Supply      
  Project), 5.90%, 6/01/27 2,855   2,378,301
  Lathrop, California, Financing Authority Revenue Bonds (Water Supply      
  Project), 6%, 6/01/35 5,140   4,028,218
  Live Oak Unified School District, California, GO (Election of 2004),      
  Series B, 5.589%, 8/01/18 (g)(j)(k) 985   244,792
  Live Oak Unified School District, California, GO (Election of 2004),      
  Series B, 5.598%, 8/01/18 (g)(j)(k) 1,030   241,823
  Live Oak Unified School District, California, GO (Election of 2004),      
  Series B, 5.61%, 8/01/18 (g)(j)(k) 1,080   239,490
  Live Oak Unified School District, California, GO (Election of 2004),      
  Series B, 5.62%, 8/01/18 (g)(j)(k) 1,125   235,586
  Live Oak Unified School District, California, GO (Election of 2004),      
  Series B, 5.631%, 8/01/18 (g)(j)(k) 1,175   232,321
  Live Oak Unified School District, California, GO (Election of 2004),      
  Series B, 5.641%, 8/01/18 (g)(j)(k) 1,230   229,567
  Live Oak Unified School District, California, GO (Election of 2004),      
  Series B, 5.651%, 8/01/18 (g)(j)(k) 1,285   226,340
  Live Oak Unified School District, California, GO (Election of 2004),      
  Series B, 5.661%, 8/01/18 (g)(j)(k) 1,340   222,721
  Live Oak Unified School District, California, GO (Election of 2004),      
  Series B, 5.669%, 8/01/18 (g)(j)(k) 1,400   219,520

2

BlackRock California Municipal Income Trust  
Schedule of Investments October 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)
    Par    
  Municipal Bonds (000)   Value
  Live Oak Unified School District, California, GO (Election of 2004),      
  Series B, 5.68%, 8/01/18 (g)(j)(k) $   1,465   $   216,673
  Los Angeles, California, Municipal Improvement Corporation, Lease      
  Revenue Refunding Bonds, Series B, 5%, 9/01/38 4,000   3,492,120
  Los Angeles, California, Regional Airports Improvement Corporation, Lease      
  Revenue Bonds (American Airlines, Inc.), AMT, Series C, 7.50%, 12/01/24 4,110   2,975,023
  Los Angeles County, California, Metropolitan Transportation Authority,      
  Sales Tax Revenue Refunding Bonds, Proposition C, VRDN, Second Senior      
  Series A, 8%, 7/01/20 (a)(b)(c) 4,000   4,000,000
  Modesto, California, Irrigation District, COP, Series B, 5.50%, 7/01/35 3,300   3,024,285
  Port of Oakland, California, Revenue Refunding Bonds, Intermediate Lien,      
  AMT, Series A, 5%, 11/01/27 (c) 5,850   4,594,707
  Rancho Cucamonga, California, Community Facilities District, Special Tax      
  Bonds, Series A, 6.50%, 9/01/33 4,000   3,322,960
  Rancho Cucamonga, California, Redevelopment Agency, Tax Allocation      
  Bonds (Rancho Redevelopment Project), 5.125%, 9/01/30 (c) 15,500   13,808,175
  Redding, California, Electric System, COP, Series A, 5%, 6/01/30 (d) 2,780   2,562,632
  Richmond, California, Wastewater Revenue Bonds, 5.619%,      
  8/01/31 (e)(g)(l) 1,905   489,833
  San Diego County, California, Water Authority, Water Revenue Refunding      
  Bonds, COP, Series A, 5%, 5/01/33 (d) 6,040   5,500,266
  San Francisco, California, City and County Airport Commission,      
  International Airport Revenue Refunding Bonds, AMT, 2nd Series,      
  6.75%, 5/01/19 3,775   3,822,754
  San Francisco, California, City and County Redevelopment Agency,      
  Community Facilities District Number 1, Special Tax Bonds (Mission Bay      
  South Public Improvements Project), 6.25%, 8/01/33 7,500   6,190,500
  San Francisco, California, City and County Redevelopment Agency,      
  Community Facilities District Number 1, Special Tax Bonds (Mission Bay      
  South Public Improvements Project), Series B, 6.125%, 8/01/31 1,775   1,448,347
  San Jose, California, M/F Housing Revenue Bonds (Lenzen Affordable      
  Housing Project), AMT, Series B, 5.45%, 2/20/43 (m)(n) 2,880   2,253,427
  San Jose, California, M/F Housing Revenue Bonds (Villages Parkway Senior      
  Apartments Housing Project), AMT, Series D, 5.50%, 4/01/34 (o) 3,595   2,914,970
  San Mateo County, California, Joint Powers Financing Authority, Lease Revenue      
  Refunding Bonds (Youth Services Campus), Series A, 5%, 7/15/33 1,575   1,402,963
  Santa Ana, California, Unified School District (Election of 2008), GO,      
  Series A, 5.125%, 8/01/33 8,000   7,226,480
  Santa Clara County, California, Housing Authority, M/F Housing Revenue      
  Bonds (John Burns Gardens Apartments Project), AMT, Series A, 5.85%,      
  8/01/31 1,715   1,488,431
  Santa Clara County, California, Housing Authority, M/F Housing Revenue Bonds      
  (Rivertown Apartments Project), AMT, Series A, 6%, 8/01/41 1,235   1,057,469
  Stockton, California, Unified School District, GO (Election of 2005), 5%,      
  8/01/31 (d) 2,500   2,305,150
  Val Verde, California, Unified School District Financing Authority, Special      
  Tax Refunding Bonds, Junior Lien, 6.25%, 10/01/28 2,245   1,887,933
        223,873,398

3

BlackRock California Municipal Income Trust  
Schedule of Investments October 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)
    Par        
  Municipal Bonds (000)     Value  
Multi-State - 11.9% Charter Mac Equity Issuer Trust, 6.30%, 6/30/49 (p)(q) $    7,000     $   7,138,320  
  Charter Mac Equity Issuer Trust, 6.80%, 11/30/50 (p)(q) 4,000     4,215,280  
  MuniMae TE Bond Subsidiary LLC, 6.30%, 6/30/49 (p)(q) 7,000     7,013,370  
  MuniMae TE Bond Subsidiary LLC, 6.80%, 6/30/50 (p)(q) 3,000     2,994,450  
          21,361,420  
Puerto Rico - 5.8% Puerto Rico Public Finance Corporation, Commonwealth Appropriation          
  Revenue Bonds, Series E, 5.70%, 2/01/10 (j) 10,000     10,395,100  
  Total Municipal Bonds - 142.6%       255,629,918  
  Municipal Bonds Transferred to          
  Tender Option Bond Trusts (r)          
California - 23.8% California Educational Facilities Authority Revenue Bonds (Stanford          
  University), Series Q, 5.25%, 12/01/32 10,000     9,931,864  
  Mount San Antonio Community College District, California, GO (Election of          
  2001), Series C, 5%, 9/01/31 (d) 10,770     9,994,560  
  Palomar Pomerado Health Care District, California, GO (Election of 2004),          
  Series A, 5.125%, 8/01/37 (c) 5,550     5,174,931  
  San Diego, California, Community College District, GO (Election of 2006),          
  5%, 8/01/32 (d) 9,000     8,283,600  
  Santa Clara County, California, Financing Authority, Lease Revenue          
  Refunding Bonds, Series L, 5.25%, 5/15/36 10,000     9,242,319  
  Total Municipal Bonds Transferred to          
  Tender Option Bond Trusts - 23.8%       42,627,274  
  Total Long-Term Investments (Cost - $332,088,781) - 166.4%       298,257,192  
  Short-Term Securities Shares        
  CMA California Municipal Money Fund, 1.02% (s)(t) 11,700,951     11,700,951  
  Total Short-Term Securities (Cost - $11,700,951) - 6.5%       11,700,951  
  Total Investments (Cost - $343,789,712*) - 172.9%       309,958,143  
  Liabilities in Excess of Other Assets - (0.1)%       (163,254 )
  Liability for Trust Certificates, Including          
       Interest Expense and Fees Payable - (16.5)%       (29,557,530 )
  Preferred Shares, at Redemption Value - (56.3)%       (100,965,747 )
  Net Assets Applicable to Common Shares - 100.0%       $ 179,271,612  

*      The cost and unrealized appreciation (depreciation) of investments as of October 31, 2008, as computed for federal income tax purposes, were as follows:
 
  Aggregate cost   $ 314,821,307    
  Gross unrealized appreciation   $ 1,811,623    
  Gross unrealized depreciation     (35,959,783 )  
  Net unrealized depreciation   $ (34,148,160 )  

(a)    Security may have a maturity of more than one year at the time of issuance, but has variable rate and demand features that qualify it as a short-term security.
(b)  Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.
(c)    MBIA Insured.
(d)  FSA Insured.
(e)  FGIC Insured.
(f)    Assured Guaranty Insured.
(g)    Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.
(h)    AMBAC Insured.

4

BlackRock California Municipal Income Trust
Schedule of Investments October 31, 2008 (Unaudited)
(i)   Represents a step bond. Rate shown reflects the effective yield at the time of purchase.
(j)   U.S. government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.
(k)   XL Capital Insured.
(l)   Security is collateralized by Municipal or U.S. Treasury Obligations.
(m)   GNMA Collateralized.
(n)   FHA Insured.
(o)   FNMA Collateralized.
(p)   Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(q)   Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.
(r)   Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction.
(s)   Represents the current yield as of report date.
(t)   Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

          Net  
  Affiliate   Income   Activity  
  CMA California Municipal Money Fund $ 48,104   (5,755,185 )
• Effective August 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:
 
  • Level 1 - price quotations in active markets/exchanges for identical securities
 
  • Level 2 - other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)
 
  • Level 3 - unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Trust's own assumption used 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. For information about the Trust's policy regarding valuation of investments and other significant accounting policies, please refer to the Trust's most recent financial statements as contained in its annual report.
 
  The following table summarizes the inputs used as of October 31, 2008 in determining the fair valuation of the Trust's investments:

  Valuation     Investments in  
  Inputs     Securities  
  Level 1   $ 11,700,951  
  Level 2     298,257,192  
  Level 3     -  
  Total   $ 309,958,143  

5

Item 2 – Controls and Procedures

2(a) – The registrant’s principal executive and principal financial officers or persons performing similar functions 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 of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
 
2(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 reasonably likely to materially affect, the registrant’s internal control over financial reporting.
   
Item 3 – Exhibits

Certifications – Attached hereto

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.

BlackRock California Municipal Income Trust
 
By: /s/ Donald C. Burke  
  Donald C. Burke
  Chief Executive Officer of
  BlackRock California Municipal Income Trust

Date: December 19, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act 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/ Donald C. Burke  
  Donald C. Burke
  Chief Executive Officer (principal executive officer) of
  BlackRock California Municipal Income Trust
 
Date: December 19, 2008
 
By: /s/ Neal J. Andrews  
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock California Municipal Income Trust
 
Date: December 19, 2008