ACTIVE ASSETS TAX FREE TRUST, N-30D, 1995-09-21

ACTIVE ASSETS TAX FREE TRUST
N-30D, 1995-09-21

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                  ACTIVE ASSETS TAX-FREE TRUST

     We hereby incorporate by reference the Annual Report in
its entirety which was filed in Post-Effective Amendment No. 17 (33
Act No. 2-71559) as filed electronically via EDGAR on August 29, 1995.
This Post-Effective Amendment contains the audited financial statements
for the fiscal year ended June 30, 1995 of Active Assets Tax-Free Trust. The 
Annual Report is hereby incorporated by reference.