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		811-7362

Western Asset Municipal Partners Fund Inc.
(Exact name of registrant as specified in charter)

55 Water Street, New York, NY			10041
(Address of principal executive offices)			(Zip code)

Robert I. Frenkel, Esq. Legg Mason & Co., LLC 100 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, 2008

ITEM 1. SCHEDULE OF INVESTMENTS

WESTERN ASSET MUNICIPAL PARTNERS FUND INC.

FORM N-Q

SEPTEMBER 30, 2008

Western Asset Municipal Partners Fund Inc.

Schedule of Investments (unaudited)

September 30, 2008

Face
Amount		Security	Value
MUNICIPAL BONDS — 98.9%
Arizona — 1.3%
$	2,855,000	Glendale, AZ, Transportation Excise Tax Revenue, MBIA, 5.000% due 7/1/28	$	2,683,129
California — 8.2%
1,000,000		California EFA Revenue, College & University Financing Program, 5.000% due 2/1/26	850,590
5,000,000		California Health Facilities Finance Authority Revenue, Catholic Healthcare West, 5.625% due 7/1/32	4,527,100
2,000,000		California Housing Finance Agency Revenue, Home Mortgage, 4.800% due 8/1/37 (a)	1,536,180
35,000		California State, GO, Unrefunded Balance, 5.125% due 6/1/24	34,061
1,500,000		California Statewide CDA Revenue, Insured Health Facility L.A., Jewish Home, CA Mortgage Insurance, 5.000% due 11/15/28	1,288,185
5,000,000		Los Angeles, CA, Department of Water & Power Revenue, Power Systems, Subordinated, FSA, 5.000% due 7/1/35	4,585,650
2,000,000		Southern California Public Power Authority, Project Number 1, 5.250% due 11/1/26	1,640,980
2,500,000		Turlock, CA, Public Financing Authority, Tax Allocation Revenue, FSA, 5.000% due 9/1/30	2,270,850
		Total California	16,733,596
Colorado — 5.5%
		Colorado Health Facilities Authority Revenue:
2,850,000		Poudre Valley Health Care, 5.000% due 3/1/25	2,498,082
5,000,000		Refunding Adventist Health, Sunbelt, 5.250% due 11/15/35 (b)	4,255,800
495,000		Colorado Springs, CO, Hospital Revenue, 6.375% due 12/15/30 (c)(d)	537,798
		Public Authority for Colorado Energy, Natural Gas Purchase Revenue:
500,000		5.750% due 11/15/18	455,015
4,000,000		6.500% due 11/15/38	3,442,400
		Total Colorado	11,189,095
District of Columbia — 2.0%
4,600,000		District of Columbia, Hospital Revenue, Childrens Hospital Obligation Group, FSA, 5.250% due 7/15/45	4,102,326
Florida — 4.3%
2,000,000		Florida State Department of Environmental Protection, Preservation Revenue, Florida Forever, AMBAC, 5.000% due 7/1/21	1,975,740
4,950,000		Florida State Department of Transportation, Turnpike Revenue, FSA, 4.500% due 7/1/34	4,125,082
2,000,000		Miami-Dade County, FL, Aviation Revenue, Miami International Airport, FSA, 5.000% due 10/1/41	1,781,900
1,000,000		Seminole Tribe Florida Special Obligation Revenue, 5.250% due 10/1/27 (e)	860,840
		Total Florida	8,743,562
Hawaii — 1.0%
2,000,000		Hawaii State Airport System Revenue, FGIC, 6.000% due 7/1/19 (a)	1,964,120
Illinois — 13.1%
		Chicago, IL, Midway Airport Revenue, MBIA:
2,000,000		5.500% due 1/1/29	2,013,900
3,750,000		5.625% due 1/1/29 (a)	3,486,525
5,000,000		Chicago, IL, Park District, GO, Refunding, FGIC, 5.000% due 1/1/29	4,683,000
1,000,000		Chicago, IL, Public Building Commission, Building Revenue, Chicago School Reform, FGIC, 5.250% due 12/1/18	1,023,660
1,500,000		Cook County, IL, Community College District No. 524 Moraine Valley, GO, MBIA, 5.000% due 12/1/25	1,446,315
2,000,000		Illinois EFA Revenue, Northwestern University, 5.500% due 12/1/13	2,160,380
		Illinois Health Facilities Authority Revenue:

See Notes to Schedule of Investments.

Western Asset Municipal Partners Fund Inc.

Schedule of Investments (unaudited) (continued)

September 30, 2008

Face
Amount		Security	Value
Illinois — 13.1% (continued)
$	1,500,000	Refunding, Lutheran General Health System, 7.000% due 4/1/14	$	1,664,925
1,850,000		Refunding, SSM Health Care, MBIA, 6.550% due 6/1/13 (f)	2,103,413
2,000,000		Servantoor Project, FSA, 6.000% due 8/15/12 (f)	2,136,800
605,000		South Suburban Hospital Project, 7.000% due 2/15/18 (f)	699,174
4,145,000		Illinois Municipal Electric Agency Power Supply, FGIC, 5.250% due 2/1/28	3,812,405
1,500,000		Illinois State, GO, First Series, FSA, 5.500% due 5/1/16	1,634,535
		Total Illinois	26,865,032
Indiana — 3.5%
		Indiana Bond Bank Revenue:
1,285,000		5.000% due 8/1/23	1,278,254
715,000		5.000% due 8/1/23 (c)	751,708
2,390,000		Indiana Health Facility Financing Authority, Hospital Revenue, Community Hospital Project, AMBAC, 5.000% due 5/1/35	2,046,772
3,000,000		Indiana State DFA Environment Improvement Revenue, USX Corp. Project, 5.250% due 12/1/22	3,040,590
		Total Indiana	7,117,324
Iowa — 0.5%
1,000,000		Iowa Finance Authority, Hospital Facility Revenue, 6.750% due 2/15/16 (c)	1,066,100
Kansas — 0.7%
1,430,000		Kansas State Development Finance Authority, Health Facilities Revenue, Sisters of Charity, 6.250% due 12/1/28	1,470,512
Maryland — 6.0%
		Maryland State Health & Higher EFA Revenue:
3,000,000		Carroll County General Hospital, 6.000% due 7/1/37	2,923,530
2,500,000		Suburban Hospital, 5.500% due 7/1/16	2,586,750
		University of Maryland Medical Systems:
1,000,000		6.750% due 7/1/30 (c)	1,080,020
1,000,000		6.000% due 7/1/32 (c)(d)	1,092,470
		Northeast Maryland Waste Disposal Authority, Solid Waste Revenue, AMBAC:
2,500,000		5.500% due 4/1/15 (a)	2,550,750
2,000,000		5.500% due 4/1/16 (a)	2,025,360
		Total Maryland	12,258,880
Massachusetts — 5.5%
1,000,000		Massachusetts Educational Financing Authority Education Loan Revenue, 6.125% due 1/1/22 (a)	935,650
		Massachusetts State HEFA Revenue, Partners Health:
2,405,000		5.750% due 7/1/32 (c)	2,604,687
95,000		5.750% due 7/1/32	96,911
		Massachusetts State Water Pollution Abatement Trust Revenue, MWRA Program:
4,665,000		5.750% due 8/1/29	4,711,230
1,155,000		5.750% due 8/1/29 (c)	1,199,271
		Massachusetts State Water Resources Authority:
800,000		FSA, 5.250% due 8/1/32	793,488
1,000,000		MBIA, 5.000% due 8/1/34	941,900
		Total Massachusetts	11,283,137
Michigan — 2.3%
		Michigan State, Hospital Finance Authority Revenue:
2,500,000		Refunding, Sparrow Hospital Obligated, 5.000% due 11/15/36	2,017,400
3,000,000		Trinity Health, 5.375% due 12/1/30	2,698,560
		Total Michigan	4,715,960

See Notes to Schedule of Investments.

Western Asset Municipal Partners Fund Inc.

Schedule of Investments (unaudited) (continued)

September 30, 2008

Face
Amount		Security	Value
Missouri — 2.1%
$	2,000,000	Boone County, MO, Hospital Revenue, Boone Hospital Center, 5.375% due 8/1/38	$	1,731,440
2,500,000		Missouri State Highways & Transit Commission, State Road Revenue, Second Lien, 5.250% due 5/1/20	2,597,850
		Total Missouri	4,329,290
New Hampshire — 0.0%
65,000		New Hampshire State HFA, Single-Family Residential Revenue, 6.800% due 7/1/15 (a)	65,068
New Jersey — 6.9%
		New Jersey EDA:
2,500,000		Motor Vehicle Surcharges Revenue, MBIA, 5.250% due 7/1/16	2,591,250
5,150,000		PCR, Revenue, Public Service Electric and Gas Co. Project, MBIA, 6.400% due 5/1/32 (a)	5,075,737
5,450,000		Water Facilities Revenue, New Jersey American Water Co. Inc. Project, FGIC, 6.875% due 11/1/34 (a)	5,458,066
1,000,000		New Jersey Health Care Facilities Financing Authority Revenue, Hackensack University Medical Center, 6.000% due 1/1/25	1,010,320
		Total New Jersey	14,135,373
New York — 10.5%
500,000		Nassau County, NY, Industrial Development Agency Revenue, Continuing Care Retirement, Amsterdam at Harborside, 6.700% due 1/1/43	471,235
		New York City, NY:
		GO:
1,980,000		6.000% due 5/15/30 (c)	2,110,700
20,000		6.000% due 5/15/30	20,192
1,000,000		Municipal Water Finance Authority, Water & Sewer Systems Revenue, 5.125% due 6/15/31	961,660
5,115,000		TFA Revenue, Unrefunded Balance, Future Tax Secured, 5.500% due 11/15/17	5,381,491
3,365,000		New York State Dormitory Authority Revenue, Court Facilities Lease, NYC Issue, Non State Supported Debt, AMBAC, 5.500% due 5/15/30	3,298,104
4,700,000		New York State Thruway Authority, Second General Highway & Bridge Trust Fund, AMBAC, 5.000% due 4/1/26	4,519,755
5,000,000		New York State Urban Development Corp. Revenue, State Personal Income Tax, 5.000% due 3/15/26	4,808,400
		Total New York	21,571,537
North Carolina — 0.5%
1,200,000		North Carolina Medical Care Commission Health Care Facilities Revenue, Novant Health Obligation Group, 5.000% due 11/1/39	1,014,096
Oregon — 0.6%
1,250,000		Multnomah County, OR, Hospital Facilities Authority Revenue, Providence Health Systems, 5.250% due 10/1/18	1,278,350
Pennsylvania — 2.5%
		Philadelphia, PA:
		Gas Works Revenue, 7th General Ordinance:
2,000,000		5.000% due 10/1/23	1,826,860
2,685,000		AMBAC, 5.000% due 10/1/17	2,805,637
500,000		School District, GO, FSA, 5.500% due 2/1/31 (c)	538,135
		Total Pennsylvania	5,170,632

See Notes to Schedule of Investments.

Western Asset Municipal Partners Fund Inc.

Schedule of Investments (unaudited) (continued)

September 30, 2008

Face
Amount		Security	Value
Tennessee — 2.2%
$	4,700,000	Memphis-Shelby County, TN, Airport Authority Revenue, AMBAC, 6.000% due 3/1/24 (a)	$	4,530,565
Texas — 13.8%
5,000,000		Aledo, TX, GO, ISD, School Building, PSF, 5.000% due 2/15/30	4,687,700
1,100,000		Beaumont, TX, ISD, GO, School Building, PSF, 5.000% due 2/15/33	1,033,604
250,000		Brazos River Authority Texas PCR, TXU Co., 8.250% due 5/1/33 (a)(e)	234,330
4,750,000		Brazos River, TX, Harbor Navigation District, Brazoria County Environmental, Dow Chemical Co. Project, 5.950% due 5/15/33 (a)	4,035,363
3,125,000		Cypress-Fairbanks, TX, ISD, GO, School House, PSF, 5.000% due 2/15/30	2,959,875
2,960,000		Harris County, TX, Health Facilities Development Corp., Hospital Revenue, Memorial Hermann Healthcare Systems, 5.250% due 12/1/18	2,962,871
3,000,000		Houston, TX, Utility System Revenue, Refunding, Combined First Lien, FSA, 5.250% due 5/15/20	3,030,300
1,000,000		Mesquite, TX, ISD No. 1, GO, Capital Appreciation, PSFG, zero coupon bond to yield 5.169% due 8/15/27	316,170
2,500,000		North Texas Tollway Authority Revenue, 5.750% due 1/1/40	2,275,050
2,000,000		Tarrant County, TX, Cultural Education Facilities Finance Corp. Revenue, Refunding, Texas Health Resources, 5.000% due 2/15/21	1,912,920
5,000,000		Texas State Turnpike Authority Revenue, First Tier, AMBAC, 5.500% due 8/15/39	4,744,100
		Total Texas	28,192,283
Virginia — 1.5%
2,915,000		Greater Richmond, VA, Convention Center Authority, Hotel Tax Revenue, Convention Center Expansion Project, 6.125% due 6/15/20 (c)	3,109,022
Washington — 4.4%
2,900,000		Chelan County, WA, Public Utility District, Chelan Hydro System No.1, Construction Revenue, AMBAC, 5.450% due 7/1/37 (a)	2,503,715
2,000,000		Port of Seattle, WA, Revenue, Refunding, Intermediate Lien, MBIA, 5.000% due 3/1/30	1,732,200
4,650,000		Seattle, WA, GO, FSA, 5.750% due 12/1/28 (c)	4,880,640
		Total Washington	9,116,555
		TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost — $214,124,771)	202,705,544
SHORT-TERM INVESTMENTS — 1.1%
Alabama — 0.8%
1,700,000		Southeast Alabama Gas District, Alabama Revenue, SPA-Societe Generale, 4.500%, 10/1/08 (g)	1,700,000
Massachusetts — 0.2%
300,000		Massachusetts State, GO, Consolidated Loan, SPA-Bank of America, 4.400%, 10/1/08 (g)	300,000
Pennsylvania — 0.1%
300,000		Luzerne County, PA, GO, Notes, FSA, SPA-JPMorgan Chase, 8.300%, 10/2/08 (g)	300,000
		TOTAL SHORT-TERM INVESTMENTS (Cost — $2,300,000)	2,300,000
		TOTAL INVESTMENTS — 100.0% (Cost — $216,424,771#)	$	205,005,544

(a)	Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax (“AMT”).
(b)	Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2008.
(c)	Pre-Refunded bonds are escrowed with U.S. government obligations 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.

See Notes to Schedule of Investments.

Western Asset Municipal Partners Fund Inc.

Schedule of Investments (unaudited) (continued)

September 30, 2008

(d)	All or a portion of this security is held at the broker as collateral for open futures contracts.
(e)	Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors, unless otherwise noted.
(f)	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.
(g)	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:
	AMBAC	-	Ambac Assurance Corporation - Insured Bonds
	CDA	-	Community Development Authority
	DFA	-	Development Finance Agency
	EDA	-	Economic Development Authority
	EFA	-	Educational Facilities Authority
	FGIC	-	Financial Guaranty Insurance Company - Insured Bonds
	FSA	-	Financial Security Assurance - Insured Bonds
	GO	-	General Obligation
	HEFA	-	Health & Educational Facilities Authority
	HFA	-	Housing Finance Authority
	ISD	-	Independent School District
	MBIA	-	Municipal Bond Investors Assurance Corporation - Insured Bonds
	MWRA	-	Massachusetts Water Resources Authority
	PCR	-	Pollution Control Revenue
	PSF	-	Permanent School Fund
	PSFG	-	Permanent School Fund Guaranty
	SPA	-	Standby Bond Purchase Agreement - Insured Bonds
	TFA	-	Transitional Finance Authority

Summary of Investments by Industry *

Hospitals	20.7	%
Transportation	14.3
Pre-Refunded/Escrowed to Maturity	11.7
Water & Sewer	10.2
Special Tax	9.6
Industrial Development	9.3
Local General Obligation	7.4
Electric	7.2
Education	2.3
Leasing	2.1
Other Revenue	1.5
Resource Recovery	1.0
Utilities	0.8
State General Obligation	0.8
Housing	0.8
General Obligation	0.3
	100.0	%

*As a percentage of total investments. Please note that Fund holdings are as of September 30, 2008 and are subject to change.

See Notes to Schedule of Investments.

Western Asset Municipal Partners Fund Inc.

Schedule of Investments (unaudited)(continued)

September 30, 2008

Ratings Table†

S&P/Moody‡
AAA/Aaa	35.0	%
AA/Aa	34.8
A	21.2
BBB/Baa	5.0
CCC/Caa	0.1
A-1/VMIG1	1.0
NR	2.9
	100.0	%

† As a percentage of total investments.

‡ S&P primary rating; Moody’s secondary.

See pages 7 and 8 for definitions of ratings.

See Notes to Schedule of Investments.

Bond Ratings (unaudited)

The definitions of the applicable rating symbols are set forth below:

Standard & Poor’s Ratings Service (“Standard & Poor’s”)—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 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

Bond Ratings (unaudited)(continued)

		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.

Notes to Schedule of Investments (unaudited)

1. Organization and Significant Accounting Policies

Western Asset Municipal Partners Fund Inc. (the “Fund”) was incorporated in Maryland on November 24, 1992 and is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Board of Directors authorized 100 million shares of $0.001 par value common stock. The Fund’s primary investment objective is to seek a high level of current income which is exempt from federal income taxes, consistent with the preservation of capital. As a secondary investment objective, the Fund intends to enhance portfolio value by purchasing tax exempt securities that, in the opinion of the investment manager may appreciate in value relative to other similar obligations in the marketplace.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

(a) Financial Futures Contracts. The Fund may enter into financial futures contracts typically to hedge a portion of the portfolio. Upon entering into a financial futures contract, the Fund is required to deposit cash or securities as initial margin, equal in value to a certain percentage of the contract amount (initial margin deposit). Additional securities are also segregated up to the current market value of the financial futures contracts. Subsequent payments, known as “variation margin,” are made or received by the Fund each day, depending on the daily fluctuations in the value of the underlying financial instruments. When the financial futures contracts are closed, a realized gain or loss is recognized equal to the difference between the proceeds from (or cost of) the closing transactions and the Fund’s basis in the contracts.

The risks associated with entering into financial futures contracts include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying financial instruments. In addition, investing in financial futures contracts involves the risk that the Fund could lose more than the initial margin deposit and subsequent payments required for a futures transaction. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

(b) Security Transactions. Security transactions are accounted for on a trade date basis.

2. Investment Valuation

Effective January 1, 2008, the Fund adopted Statement of Financial Accounting Standards No. 157 (“FAS 157”). FAS 157 establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Fund’s investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized 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 Fund’s own assumptions in determining the fair value of investments)

Securities are valued based on transactions in municipal obligations, quotations from municipal bond dealers, market transactions in comparable securities and various other relationships between securities. When prices are not readily available, or are determined not to reflect fair value, the Fund may value these securities at fair value as determined in accordance with the procedures approved by the Fund’s Board of Directors. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates fair value.

Notes to Schedule of Investments (unaudited) (continued)

The following is a summary of the inputs used in valuing the Fund’s assets carried at fair value:

	September 30, 2008			Quoted Prices (Level 1)			Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Investments in Securities	$	205,005,544		—			$	205,005,544	—
Other Financial Instruments*	(159,875		)	$	(159,875	)	—		—
Total	$	204,845,669		$	(159,875	)	$	205,005,544	—

* Other financial instruments includes futures contracts.

3. Investments

At September 30, 2008, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

Gross unrealized appreciation	$	2,909,387
Gross unrealized depreciation	(14,328,614		)
Net unrealized depreciation	$	(11,419,227	)

At September 30, 2008, the Fund had the following open futures contract:

Contracts to Sell	Number of Contracts	Expiration Date	Basis Value		Market Value		Unrealized Loss
U.S. Treasury Bonds	100	12/08	$	11,557,313	$	11,717,188	$	(159,875	)

4. Recent accounting pronouncement

In March 2008, the Financial Accounting Standards Board issued the Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (“FAS 161”). FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. FAS 161 requires enhanced disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial position, performance and cash flows. Management is currently evaluating the impact the adoption of FAS 161 will have on the Fund’s financial statements and related disclosures.

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.

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.

Western Asset Municipal Partners Fund Inc.

By	/s/ R. Jay Gerken
R. Jay Gerken
Chief Executive Officer


Date: November 25, 2008

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/ R. Jay Gerken
R. Jay Gerken
Chief Executive Officer

Date: November 25, 2008


By	/s/ Kaprel Ozsolak
Kaprel Ozsolak
Chief Financial Officer

Date: November 25, 2008