DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND, N-30D, 1995-02-21

DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
N-30D, 1995-02-21

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<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
Two World Trade Center
New York, New York 10048

DEAR SHAREHOLDER:
- --------------------------------------------------------------------------------
MARKET CONDITIONS

Interest rates moved higher throughout 1994 as the fixed-income markets
focused on the strong pace of economic growth and the potential for higher
inflation. Satisfied that economic growth would be sustained, the Federal
Reserve Board began to tighten monetary policy to one of neutrality. Between
February and November, the central bank raised the federal-funds rate from 3.00
percent to 5.50 percent in six stages. This led to a severe bear market in
bonds.

Municipal yields, as tracked by THE BOND BUYER Revenue Bond Index,* began
1994 at 5.52 percent, nearly a record low. The Index peaked at 7.37 percent in
November and ended the year at 6.97 percent. The 145 basis point yield increase
during the year was equivalent to an 18 percent price decline for a bond with a
30 year maturity. In contrast, over the six-year period between 1987 and 1993,
yields fell from 9.00 percent to 5.50 percent and bond prices appreciated 24
percent.

The municipal bond market's weakness
paralleled trends in other fixed-income
sectors. The 30-year U.S. Treasury bond's
yield increased 160 basis points and closed
1994 at 7.84 percent. During the year, the
ratio of Revenue Bond Index yields to 30-year
U.S. Treasury bond yields ranged from a low of
85 percent to a high of 92 percent and ended
the year at 89 percent. (At higher ratios,
municipals are more attractive relative to
taxable investments.)

The fiscal year was also marked by periods
of supply/demand imbalance in municipals.
Between February and May, dealer inventories
reached near-record levels as long-term bonds
were sold to pay taxes and increase cash. A
semblance of stability returned to the market
between June and August. However, after Labor
Day the market was again subject to a renewed
round of bond sales as fund redemptions
mounted and tax-loss selling accelerated.
Market conditions improved in December as the
"January effect"--the reinvestment of coupons,
redemptions and maturities at a time of
seasonally scarce supply--was anticipated.
This seasonal pattern more than offset market
uncertainty caused by the Orange County,
California bankruptcy filing. On December 6,
1994, Orange County, one of the most affluent
areas in the country, was forced to seek
protection after its pooled investment fund
faced unprecedented losses.

- --------------------------------------------------------------------------------

*THE BOND BUYER Revenue Bond Index is an arithmetic average of the yields of 25
selected municipal revenue bonds with 30-year maturities. Credit ratings of
these bonds range from Aa1 to Baa1 by Moody's and AA+ to A- by Standard &
Poor's.

<PAGE>
Higher interest rates slowed state and local government debt issuance.
New-issue volume dropped 44 percent to $163 billion in 1994. The driving force
behind this sharp decline was the virtual halt in refunding issues, which
plummeted 74 percent. Last year the level of redemptions from maturing debt and
refunding calls reached $191 billion and exceeded the supply of new issues
coming to market. This marked the decline in the amount of municipal securities
outstanding. A repeat of this supply scarcity is expected in 1995 and bodes well
for the relative performance of municipals.

PERFORMANCE

Dean Witter Select Municipal Reinvestment Fund's total return for the fiscal
year ended December 31, 1994 was -5.98 percent. Tax free dividends totaling
$0.69 per share were paid during the year. At year end, the Fund's net assets
totaled $86 million. Since inception the Fund has provided shareholders with an
average annual return of 8.54 percent. The accompanying chart illustrates the
performance of a $10,000 investment in the Fund over the 10-year period ended
December 31, 1994, versus the performance of a similar hypothetical investment
in the Lehman Brothers Municipal Bond Index.

INVESTMENT STRATEGY

During a year of rapidly rising interest rates, the Fund benefited from its
established mix of older high-coupon bonds. At the end of the fiscal year, the
portfolio held 9 percent of its net assets in refunded issues, which were
secured by U.S. government securities held in escrow to redeem these issues on
their first call dates. The Fund also increased its short-term investment and
cash position to 7 percent at year-end 1994.

On December 31, 1994, the portfolio's long-term investments were diversified
among 11 specific municipal sectors and 48 credits. None of the Fund's holdings
has been identified as a participant in the Orange County investment pool. The
three largest sectors were water & sewer, transportation facilities and
educational facilities revenue bonds, representing 44 percent of net assets. The
average maturity and call protection of the Fund's long-term holdings were 18
years and 7 years, respectively. The credit-quality ratings of the long-term
portfolio are summarized below:

<TABLE>
<CAPTION>
MOODY'S OR STANDARD & POOR'S RATING PERCENT
- ----------------------------------------------------------- -------------
<S> <C>
Aaa or AAA................................................. 23%
Aa or AA................................................... 29
A or A..................................................... 40
Baa or BBB................................................. 3
Not rated.................................................. 5
</TABLE>

LOOKING AHEAD

Moving into 1995, the Fund plans to reduce its defensive positions,
including refunded bonds, as the pace of economic growth and inflationary
expectations moderate. New investments will continue to stress credit quality
and essential service sectors.

We appreciate your ongoing support of Dean Witter Select Municipal
Reinvestment Fund and look forward to continuing to serve your investment needs.

Very truly yours,

[SIG]
Charles A. Fiumefreddo
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- --------- -------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS (91.6%)
GENERAL OBLIGATION (7.5%)
$ 2,000 Washington Suburban Sanitation District, Maryland, General
Construction Refg 1994.............................................. 5.00 % 06/01/14 $ 1,658,160
2,000 Massachusetts, 1994 Ser C (FGIC Insured).............................. 6.75 11/01/12 2,027,380
3,000 New York City, New York, 1990 Ser D................................... 6.00 08/01/07 2,763,240
-------------
- -----------
6,448,780
7,000
-------------
- -----------
EDUCATIONAL FACILITIES REVENUE (13.6%)
2,000 Price-Elliot Research Park Inc, Arizona, Arizona State University Refg
Ser 1991 (MBIA Insured)............................................. 7.00 07/01/21 2,050,100
3,000 Georgetown University, District of Columbia, Ser 1993................. 5.375 04/01/23 2,357,220
2,000 Morgan State University, Maryland, Academic & Auxiliary Fees 1990 Ser
A (MBIA Insured) (Prerefunded)...................................... 7.00 07/01/20 2,154,580
2,000 Massachusetts Health & Educational Facilities Authority, Boston
College Ser K....................................................... 5.25 06/01/18 1,643,240
1,500 Rutgers-The State University, New Jersey, Refg Ser R.................. 6.50 05/01/13 1,511,295
2,000 New York State Dormitory Authority, State University Ser 1989 B....... 0.00 05/15/03 1,191,780
1,000 Ohio Higher Educational Facility Commission, Oberlin College Ser
1993................................................................ 5.375 10/01/15 855,480
-------------
- -----------
11,763,695
13,500
-------------
- -----------
ELECTRIC REVENUE (9.7%)
1,000 Northern California Power Agency, Geothermal #3-1987 Refg Ser A
(Crossover Refunded)................................................ 7.00 07/01/07 1,022,100
2,000 Nebraska Public Power District, Power Supply 1993 Ser................. 6.125 01/01/15 1,858,460
1,000 Fayetteville, North Carolina, Public Works Ser 1990 (FGIC Insured)
(Prerefunded)....................................................... 6.50 03/01/14 1,052,510
665 North Carolina Municipal Power Agency #1, Catawba Ser 1985 A.......... 7.00 01/01/20 665,060
1,000 Austin, Texas, Utilities Refg Ser 1993 A.............................. 5.625 05/15/16 863,470
2,000 Intermountain Power Agency, Utah, Refg 1985 Ser H..................... 6.00 07/01/21 1,784,540
3,000 Washington Public Power Supply System, Proj #2 Refg Ser 1994 A (FGIC
Insured)............................................................ 0.00 07/01/09 1,156,980
-------------
- -----------
8,403,120
10,665
-------------
- -----------
HOSPITAL REVENUE (10.2%)
2,000 Maryland Health & Higher Educational Facilities Authority, University
of Maryland Medical Ser 1991 A (FGIC Insured) (Prerefunded)......... 6.50 07/01/21 2,078,220
2,000 Saint Cloud, Minnesota, The Saint Cloud Hospital Ser 1990 B (AMBAC
Insured) (Prerefunded).............................................. 7.00 07/01/20 2,154,880
2,000 Clermont County, Ohio, Mercy Health Ser 1991 (AMBAC Insured).......... 6.733 10/05/21 1,994,800
2,500 North Central Texas Health Facilities Development Corporation,
University Medical Center Ser 1989.................................. 8.20 04/01/19 2,645,125
-------------
- -----------
8,873,025
8,500
-------------
- -----------
INDUSTRIAL DEVELOPMENT/POLLUTION CONTROL REVENUE (11.1%)
750 California Alternative Energy Source Financing Authority,
SRI International Cogeneration Ser 1985 (a)......................... 9.75 12/01/05 375,000
Connecticut Development Authority, Bridgeport Hydraulic Co
700 Refg Ser 1990....................................................... 7.25 06/01/20 710,325
2,000 Refg 1994 Ser A (MBIA Insured)...................................... 6.05 03/01/29 1,831,100
</TABLE>
<PAGE>

DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1994 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- --------- -------------
<C> <S> <C> <C> <C>
$ 1,500 Michigan Strategic Fund, Ford Motor Co Refg Ser 1991 A................ 7.10 % 02/01/06 $ 1,552,215
1,000 Claiborne County, Mississippi, Middle South Energy Inc Ser C.......... 9.875 12/01/14 1,119,440
2,000 Ohio Water Development Authority, Dayton Power & Light Co
Collateralized Refg 1992 Ser A...................................... 6.40 08/15/27 1,892,900
1,500 Matagorda County Navigation District #1, Texas,
Central Power & Light Co Collateralized Ser 1984 A.................. 7.50 12/15/14 1,564,800
500 Russell County Industrial Development Authority, Virginia, Appalachian
Power Co Ser G...................................................... 7.70 11/01/07 528,765
-------------
- -----------
9,574,545
9,950
-------------
- -----------
MORTGAGE REVENUE - MULTI-FAMILY (1.6%)
1,000 Michigan Housing Development Authority, Rental 1992 Ser A............. 6.60 04/01/12 976,750
400 Pennsylvania Housing Finance Agency, Moderate Rehabilitation - Section
8 Assisted Issue B.................................................. 9.00 08/01/01 415,192
-------------
- -----------
1,391,942
1,400
-------------
- -----------
MORTGAGE REVENUE - SINGLE FAMILY (1.4%)
1,145 Maricopa County Industrial Development Authority, Arizona,
Refg 1991 Ser A..................................................... 7.50 08/01/12 1,175,434
-------------
- -----------
PUBLIC FACILITIES REVENUE (4.3%)
2,000 California Public Works Board, Corrections 1993 Ser D................. 5.375 06/01/12 1,649,400
1,000 Hennepin County, Minnesota, Ser 1991 COPs............................. 6.80 05/15/17 1,012,440
1,000 Puerto Rico Infrastructure Financing Authority, Special Tax
Ser 1988 A.......................................................... 7.90 07/01/07 1,058,860
-------------
- -----------
3,720,700
4,000
-------------
- -----------
TRANSPORTATION FACILITIES REVENUE (13.9%)
2,000 Los Angeles County Transportation Commission, California,
Sales Tax Ser 1991 B................................................ 6.50 07/01/13 1,919,100
3,500 Kentucky Turnpike Authority, Resource Recovery Road
1987 Ser A BIGS..................................................... 0.00** 07/01/06 3,314,780
1,500 Albuquerque, New Mexico, Gross Receipts Tax-Airport Supported Sub Lien
Ser 12/84........................................................... 8.25 07/01/14 1,567,350
2,000 Ohio Turnpike Commission, 1994 Ser A.................................. 5.75 02/15/24 1,755,520
2,000 Pennsylvania Turnpike Commission, Ser A of 1986....................... 6.00 12/01/17 1,843,600
2,000 Puerto Rico Highway & Transportation Authority, Refg Ser X............ 5.25 07/01/21 1,606,080
-------------
- -----------
12,006,430
13,000
-------------
- -----------
WATER & SEWER REVENUE (16.5%)
3,000 Phoenix Civic Improvement Corporation, Arizona, Jr Lien Water Ser
1994................................................................ 5.45 07/01/19 2,504,550
2,000 Maryland Water Quality Financing Administration, 1990 Ser A........... 7.25 09/01/11 2,097,780
2,000 Boston Water & Sewer Commission, Massachusetts, 1992 Ser A............ 6.00 11/01/15 1,837,460
1,500 Massachusetts Water Resource Authority, 1993 Ser C.................... 5.25 12/01/08 1,303,785
2,000 Suffolk County Industrial Development Agency, New York,
Southwest Sewer Ser 1994 (FGIC Insured)............................. 4.75 02/01/09 1,652,680
1,000 Columbus, Ohio, Sewerage Refg Ser 1992................................ 6.25 06/01/08 1,001,340
Spartanburg, South Carolina, Water Impr
1,250 Refg Ser A 1992..................................................... 6.25 06/01/12 1,200,025
1,000 Refg Ser A 1992..................................................... 6.25 06/01/17 945,880
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
<C> <S> <C> <C> <C>
SHORT-TERM MUNICIPAL OBLIGATIONS (6.5%)
3,300 Illinois Health Facilities Authority, Resurrection Health Care Ser
1993 (Tender 01/03/95).............................................. 5.90* 05/01/11 3,300,000
2,300 Harris County Health Facilities Development Corporation, Texas,
St Luke's Episcopal Hospital Ser D 1985 (Tender 01/03/95)........... 5.85* 02/15/16 2,300,000
-------------
- -----------
5,600 TOTAL SHORT-TERM MUNICIPAL OBLIGATIONS
(IDENTIFIED COST $5,600,000)........................................ 5,600,000
-------------
<C>
- -----------
$ 92,010 TOTAL INVESTMENTS (IDENTIFIED COST $85,434,702) (B).......... 98.1% 84,738,121
- -----------
- -----------
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES............... 1.9 1,667,277
---------- -------------
NET ASSETS 100.0% $ 86,405,398
---------- -------------
---------- -------------
<FN>
- ----------------
BIGS BOND INCOME GROWTH SECURITY.
COPS CERTIFICATES OF PARTICIPATION.
* VARIABLE OR FLOATING RATE SECURITIES. COUPON RATE SHOWN REFLECTS CURRENT
RATE.
** CURRENTLY ZERO COUPON BOND; WILL BECOME INTEREST BEARING NOTE AT A FUTURE
DATE.
(A) PARTIAL INTEREST PAID. INTEREST INCOME IS RECORDED AS RECEIVED.
(B) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $85,434,702; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $3,475,792 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $4,172,373, RESULTING IN NET UNREALIZED
DEPRECIATION OF $696,581.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS

GEOGRAPHIC SUMMARY OF INVESTMENTS
Based on Market Value as a Percent of Net Assets
DECEMBER 31, 1994
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Arizona........ 6.6%
California..... 5.8
Connecticut.... 3.0
District of
Columbia...... 2.7
Illinois....... 3.8
Kentucky....... 3.8
Maryland....... 9.2%
Massachusetts.. 7.9
Michigan....... 2.9
Minnesota...... 3.7
Mississippi.... 1.3
Nebraska....... 2.2
New Jersey..... 1.7
New Mexico..... 1.8%
New York....... 8.3
North
Carolina...... 2.0
Ohio........... 8.7
Pennsylvania... 2.6
Puerto Rico.... 3.1
South
Carolina...... 2.5
Tennessee...... 2.0%
Texas.......... 8.5
Utah........... 2.1
Virginia....... 0.6
Washington..... 1.3
---------
TOTAL 98.1%
---------
---------
</TABLE>
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1994
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $85,434,702)............ $ 84,738,121
Cash....................................... 339,068
Receivable for:
Interest................................. 1,566,379
Investments sold......................... 2,707
Shares of beneficial interest sold....... 456
Prepaid expenses and other assets.......... 15,825
------------
TOTAL ASSETS....................... 86,662,556
------------
LIABILITIES:
Payable for:
Shares of beneficial interest
repurchased............................ 129,104
Investment management fee................ 36,471
Dividends to shareholders................ 9,896
Accrued expenses and other payables........ 81,687
------------
TOTAL LIABILITIES.................. 257,158
------------
NET ASSETS:
Paid-in-capital............................ 87,025,070
Net unrealized depreciation................ (696,581)
Accumulated undistributed net investment
income................................... 23,198
Accumulated net realized gain.............. 53,711
------------
NET ASSETS......................... $ 86,405,398
------------
------------
NET ASSET VALUE PER SHARE, 7,619,374 shares
outstanding (unlimited shares authorized
of $.01 par value).......................
$11.34
------------
------------
</TABLE>

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1994

<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INTEREST INCOME......................... $ 5,818,750
-------------
EXPENSES
Investment management fee............. 461,478
Transfer agent fees and expenses...... 267,254
Professional fees..................... 44,989
Shareholder reports and notices....... 40,993
Registration fees..................... 32,273
Trustees' fees and expenses........... 19,684
Other................................. 22,212
-------------
TOTAL EXPENSES.................... 888,883
-------------
NET INVESTMENT INCOME........... 4,929,867
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain..................... 53,865
Net change in unrealized
appreciation........................ (11,074,926)
-------------
NET LOSS.......................... (11,021,061)
-------------
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS..... $ (6,091,194)
-------------
-------------
</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
DECEMBER 31, 1994 DECEMBER 31, 1993
------------------ ------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income................................................ $ 4,929,867 $ 4,639,611
Net realized gain.................................................... 53,865 687,390
Net change in unrealized appreciation................................ (11,074,926) 4,565,906
------------------ ------------------
Net increase (decrease).......................................... (6,091,194) 9,892,907
------------------ ------------------
Dividends and distributions to shareholders from:
Net investment income................................................ (5,253,876) (4,564,504)
Net realized gain.................................................... (273,982) (387,730)
------------------ ------------------
Total dividends and distributions................................ (5,527,858) (4,952,234)
Net increase from transactions in shares of beneficial interest...... 1,759,547 15,406,570
------------------ ------------------
Total increase (decrease)........................................ (9,859,505) 20,347,243
NET ASSETS:
Beginning of period.................................................... 96,264,903 75,917,660
------------------ ------------------
END OF PERIOD (including undistributed net investment income of $23,198
and $336,783, respectively)........................................... $ 86,405,398 $ 96,264,903
------------------ ------------------
------------------ ------------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------

1. Organization and Accounting Policies--Dean Witter Select Municipal
Reinvestment Fund (the "Fund") is registered under the Investment Company Act of
1940, as amended (the "Act"), as a diversified, open-end management investment
company. The Fund was organized as a Massachusetts business trust on June 1,
1983 and commenced operations on September 22, 1983.

The following is a summary of significant accounting policies:

A. VALUATION OF INVESTMENTS--Portfolio securities are valued for the Fund by
an outside independent pricing service approved by the Trustees. The pricing
service has informed the Fund that in valuing the Fund's portfolio
securities, it uses both a computerized matrix of tax-exempt securities and
evaluations by its staff, in each case based on information concerning
market transactions and quotations from dealers which reflect the bid side
of the market each day. The Fund's portfolio securities are thus valued by
reference to a combination of transactions and quotations for the same or
other securities believed to be comparable in quality, coupon, maturity,
type of issue, call provisions, trading characteristics and other features
deemed to be relevant. Short-term debt securities having a maturity date of
more than sixty days at time of purchase are valued on a mark-to-market
basis until sixty days prior to maturity and thereafter at amortized cost
based on their value on the 61st day. Short-term debt securities having a
maturity date of sixty days or less at the time of purchase are valued at
amortized cost.

B. ACCOUNTING FOR INVESTMENTS--Security transactions are accounted for on
the trade date (date the order to buy or sell is executed). Realized gains
and losses on security transactions are determined by the identified cost
method. The Fund amortizes premiums and discounts on securities purchased
over the life of the respective securities. Interest income is accrued daily
except where collection is not expected.

C. FEDERAL INCOME TAX STATUS--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable and nontaxable income to its
shareholders. Accordingly, no federal income tax provision is required.

D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS--The Fund records dividends
and distributions to its shareholders on the record date. The amount of
dividends and distributions from net investment income and net realized
capital gains are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such
amounts are reclassified within the capital accounts based on their federal
tax-basis treatment; temporary differences do not require reclassification.
Dividends and distributions which exceed net investment income and net
realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains. To the extent they
exceed net investment income and net realized capital gains for tax
purposes, they are reported as distributions of paid-in-capital.

2. Investment Management Agreement--Pursuant to an Investment Management
Agreement with Dean Witter InterCapital Inc. (the "Investment Manager"), the
Fund pays its Investment Manager a management fee, accrued daily and payable
monthly, by applying the annual rate of 0.50% to the daily net assets of the
Fund determined as of the close of each business day.

Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes, at its own expense, office space,
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
facilities, equipment, clerical, bookkeeping and certain legal services and pays
the salaries of all personnel, including officers of the Fund who are employees
of the Investment Manager. The Investment Manager also bears the cost of
telephone services, heat, light, power and other utilities provided to the Fund.

3. Security Transactions and Transactions with Affiliates--The cost of
purchases and proceeds from sales of portfolio securities, excluding short-term
investments, for the year ended December 31, 1994 aggregated $15,915,314 and
$19,602,361, respectively.

Dean Witter Trust Company, an affiliate of the Investment Manager, is the
Fund's transfer agent. At December 31, 1994, the Fund had transfer agent fees
and expenses payable of approximately $31,000.

4. Shares of Beneficial Interest--Transactions in shares of beneficial interest
were as follows:

<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
DECEMBER 31, 1994 DECEMBER 31, 1993
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold..................................... 3,172,307 $ 38,359,487 4,540,460 $ 57,002,124
Reinvestment of dividends and
distributions........................... 449,718 5,341,690 382,816 4,821,330
---------- ------------ ---------- ------------
3,622,025 43,701,177 4,923,276 61,823,454
Repurchased.............................. (3,511,123) (41,941,630) (3,677,938) (46,416,884)
---------- ------------ ---------- ------------
Net increase............................. 110,902 $ 1,759,547 1,245,338 $ 15,406,570
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
</TABLE>
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987
--------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of
period.......................... $ 12.82 $ 12.12 $ 11.89 $ 11.25 $ 11.41 $ 11.08 $ 10.60 $ 11.85
--------- --------- --------- --------- --------- --------- --------- ---------

Net investment income............. 0.65 0.67 0.70 0.71 0.70 0.68 0.70 0.72
Net realized and unrealized gain
(loss).......................... (1.40) 0.75 0.32 0.62 (0.15) 0.33 0.49 (1.15)
--------- --------- --------- --------- --------- --------- --------- ---------

Total from investment
operations...................... (0.75) 1.42 1.02 1.33 0.55 1.01 1.19 (0.43)
--------- --------- --------- --------- --------- --------- --------- ---------
Less dividends and distributions
from:
Net investment income........... (0.69) (0.67) (0.70) (0.69) (0.71) (0.68) (0.70) (0.72)
Net realized gain............... (0.04) (0.05) (0.09) -- -- -- (0.01) (0.10)
--------- --------- --------- --------- --------- --------- --------- ---------
Total dividends and
distributions................... (0.73) (0.72) (0.79) (0.69) (0.71) (0.68) (0.71) (0.82)
--------- --------- --------- --------- --------- --------- --------- ---------
Net asset value, end of period.... $ 11.34 $ 12.82 $ 12.12 $ 11.89 $ 11.25 $ 11.41 $ 11.08 $ 10.60
--------- --------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- --------- ---------

TOTAL INVESTMENT RETURN........... (5.98)% 11.99% 8.88% 12.04% 5.27% 9.47% 11.42% (3.53)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands).................. $86,405 $96,265 $75,918 $67,903 $60,304 $52,485 $44,769 $40,938
Ratios to average net assets:
Expenses........................ 0.96% 1.02% 1.14% 1.20% 1.21% 1.40% 1.41% 1.36%
Net investment income........... 5.34% 5.25% 5.79% 6.06% 6.12% 5.90% 6.27% 6.37%
Portfolio turnover rate........... 18% 9% 13% 30% 22% 15% 13% 43%

- ---------------
* NET OF EXPENSE REIMBURSEMENT.

<CAPTION>
1986 1985
--------- ---------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of
period.......................... $ 11.41 $ 10.14
--------- ---------
Net investment income............. 0.76 0.82
Net realized and unrealized gain
(loss).......................... 1.31 1.28
--------- ---------
Total from investment
operations...................... 2.07 2.10
--------- ---------
Less dividends and distributions
from:
Net investment income........... (0.77) (0.82)
Net realized gain............... (0.86) (0.01)
--------- ---------
Total dividends and
distributions................... (1.63) (0.83)
--------- ---------
Net asset value, end of period.... $ 11.85 $ 11.41
--------- ---------
--------- ---------
TOTAL INVESTMENT RETURN........... 19.33% 21.38%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands).................. $38,058 $19,802
Ratios to average net assets:
Expenses........................ 1.50%* 1.50%*
Net investment income........... 6.30% 7.34%
Portfolio turnover rate........... 35% 129%
- ---------------
* NET OF EXPENSE REIMBURSEMENT.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------

To the Shareholders and Trustees of Dean Witter Select Municipal Reinvestment
Fund.

In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Dean Witter Select Municipal
Reinvestment Fund (the "Fund") at December 31, 1994, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each of
the ten years in the period then ended, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities owned at December 31, 1994 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.

PRICE WATERHOUSE LLP
New York, New York
February 13, 1995

1994 FEDERAL TAX NOTICE (UNAUDITED)
During the year ended December 31, 1994, the Fund paid to the shareholders
$0.692 per share from net investment income. All of the Fund's dividends from
net investment income were exempt interest dividends, excludable from gross
income for Federal income tax purposes. For the year ended December 31, 1994,
the Fund paid to shareholders $0.036 per share from long-term capital gains.
<PAGE>

TRUSTEES
- -----------------------------------------
Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo DEAN WITTER
Edwin J. Garn SELECT MUNICIPAL
John R. Haire REINVESTMENT
Dr. Manuel H. Johnson FUND
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder

OFFICERS
- -----------------------------------------
Charles A. Fiumefreddo
CHAIRMAN AND CHIEF EXECUTIVE OFFICER

Sheldon Curtis
VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL

James F. Willison
VICE PRESIDENT

Thomas F. Caloia
TREASURER

TRANSFER AGENT
- -----------------------------------------
Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311

INDEPENDENT ACCOUNTANTS
- -----------------------------------------
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036

INVESTMENT MANAGER
- -----------------------------------------
Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048

This report is submitted for the general
information of shareholders of the Fund.
For more detailed information about the
Fund, its officers and trustees, fees,
expenses and other pertinent information,
please see the prospectus of the Fund.

This report is not authorized for
distribution to prospective investors
in the Fund unless preceded or accompanied
by an effective prospectus.

ANNUAL REPORT
DECEMBER 31, 1994

<PAGE>

DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
GROWTH OF $10,000
($ IN THOUSANDS)
<TABLE>
<CAPTION>

LEHMAN BROTHERS
DATE TOTAL MUNICIPAL BOND
INDEX
<S> <C> <C>

December 31, 1984 $10,000 $10,000
December 31, 1985 $12,138 $12,003
December 31, 1986 $14,483 $14,321
December 31, 1987 $13,972 $14,537
December 31, 1988 $15,567 $16,014
December 31, 1989 $17,042 $17,742
December 31, 1990 $17,940 $19,035
December 31, 1991 $20,100 $21,346
December 31, 1992 $21,885 $23,229
December 31, 1993 $24,509 $26,081
December 31, 1994 $23,044 (3) $24,733

AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS 10 YEARS
<S> <C> <C>

-5.98(1) 6.22(1) 8.71(1)

Fund Lehman (3)

<FN>
- ----------------------------------------

Past performance is not predictive of future returns.

(1) Figure shown assumes reinvestment of all distributions. There is no sales
charge.

(2) Closing value assuming a complete redemption on December 31, 1994.

(3) The Lehman Brothers Municipal Bond Index tracks the performance of
municipal bonds with maturities of 2 years or greater and a minimum credit
rating of Baa or BBB, as rated by Moody's Investors Service, Inc. or
Standard & Poor's Corp. The Index does not include any expenses, fees, or
charges.

</TABLE>