DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND, N-30D, 1996-03-01

DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
N-30D, 1996-03-01

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<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND TWO WORLD TRADE CENTER, NEW
YORK, NEW YORK
10048
LETTER TO THE SHAREHOLDERS DECEMBER 31, 1995

DEAR SHAREHOLDER:

Bonds rallied significantly during 1995. Progressive tightening of monetary
policy by the Federal Reserve Board over the 12 months through February 1995
slowed economic growth and caused bonds to advance throughout the year. The
trend toward lower long-term interest rates was aided by the central bank's
easing of short-term interest rates in July and December.

MUNICIPAL MARKET CONDITIONS

Long-term municipal bond yields declined from 6.97 percent in December 1994 to
5.71 percent at the end of December 1995, as tracked by The Bond Buyer Revenue
Bond Index*. This 126 basis point drop in yield corresponded to a 10 percent
price increase for callable municipal bonds with 30-year maturities. Yields on
1-year municipal notes experienced a similar move, declining from 4.95 to 3.60
percent. At the end of the year, the yield pickup for extending maturity from
1-year (3.60%) to 30-years (5.71%) was 211 basis points.

Tax-exempt bond prices began the year by outperforming the prices of U.S.
Treasury bonds, but gradually deteriorated. The ratio of the Revenue Bond Index
yield to the 30-year U.S. Treasury bond yield moved from 89 percent in December
1994 to 84 percent by the end of February 1995. A declining ratio means that
municipal bond prices have been stronger than U.S. Treasury prices. In the
spring, the municipal market began to discount the risk of comprehensive changes
in the tax code created by flat-tax rhetoric from Washington. This caused the
yield ratio to move above 90 percent during the summer and end the year at 95
percent. Over the past 10 years, long municipal yields have averaged 89 percent
of U.S. Treasury yields.

- --------------------------------------------------------------
*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 bond range from Aa1 to Baa1 by Moody's Investors Service, Inc., and AA+ to
A- by Standard & Poor's Corp.
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
LETTER TO THE SHAREHOLDERS DECEMBER 31, 1995, CONTINUED

Despite a resurgence in new issue volume in the second half of 1995, the
municipal market continued to experience consolidation. Municipal underwriting
was down 25 percent through June 1995, but ended the year only 5 percent below
1994's level. This followed a 44 percent drop in volume for all of 1994. Lower
underwriting volume and diminished profitability caused several major dealers to
withdraw from the municipal business.

TAX REFORM

Flat-tax advocates have generated increased publicity for their proposals and
have influenced the municipal market since early 1995. Most tax-reform
discussions have been based on concepts containing broad assumptions and lacking
specific details. The various plans seek to simplify the tax process, but raise
questions about the fairness of changing from a progressive tax structure.
Flat-tax proposals call for the elimination of deductions of mortgage interest,
charitable contributions, property taxes, and state and local income taxes. As
politicians have focused more on tax reform as an issue in the 1996 elections,
media coverage has expanded from the financial page to the front
[GRAPHIC]
page. Municipal bonds have periodically
come under political pressure in the
past. For example, prior to passage of
major tax reform legislation in 1986,
municipal yields briefly exceeded
taxable yields.
[GRAPHIC]
Flat-tax proposals would also affect
municipal credits. If mortgage interest
and property tax deductions were
eliminated, municipalities would
experience a decline in their property
tax base. The loss of state and local
income tax deductions would increase
the relative economic disadvantage that
high-tax states already face. The flat
tax represents an attempt to shift tax
accountability from the federal level
to local governments. Taxpayer
recognition of the extent of the
changes under consideration may impede
the passage of comprehensive tax
reform.

PERFORMANCE
[GRAPHIC]
Dean Witter Select Municipal
Reinvestment Fund's total return for
the fiscal year ended December 31, 1995
was 16.00 percent. The Fund's net asset
value
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
LETTER TO THE SHAREHOLDERS DECEMBER 31, 1995, CONTINUED

adjusted for December's capital gains distribution increased from $11.34 to
$12.48 per share. Tax-free dividends totaling $0.62 per share were paid during
the year.

Since inception (September 22, 1983) the Fund has provided shareholders with an
average annual total return of 9.13 percent. The accompanying chart illustrates
the performance of a $10,000 investment in the Fund since inception through the
fiscal year ended December 31, 1995, versus the performance of a similar
hypothetical investment in the issues comprising the Lehman Brothers Municipal
Bond Index.

PORTFOLIO STRUCTURE
[GRAPHIC]
On December 31, 1995, the Fund's $95
million in
net assets was diversified among 11
long-term municipal sectors and 50
credits. The three largest sectors --
water & sewer revenue, transportation
revenue and general obligation bonds --
represented approximately 47 percent of
the portfolio. The average maturity and
call protection of the Fund's long-term
holdings were 18 and 7 years,
respectively. Credit quality was
upgraded during 1995. Long-term
holdings rated AA and AAA increased
from 52 to 60 percent. The credit
quality of the portfolio is illustrated
at the right.

LOOKING AHEAD

The slower pace of economic growth in 1995 and the Federal Reserve Board's
latest interest rate moves have improved bond-market expectations. The
decreasing supply of new issues, combined with significant maturities and calls
for redemptions, should continue to be positive for the municipal market.
However, tax-reduction proposals are likely to continue to receive publicity and
cloud the outlook for tax-exempt bonds. With long-term municipal securities
yielding more than 90 percent of the yield on U.S. Treasuries, the market has
already begun the process of discounting the risk that a flat tax might
eventually become law.
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
LETTER TO THE SHAREHOLDERS DECEMBER 31, 1995, CONTINUED

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,

[SIGNATURE]
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE
- ------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>

MUNICIPAL BONDS (97.0%)
GENERAL OBLIGATION (14.5%)
$ 2,000 Washington Suburban Sanitation District, Maryland, General Construction Refg 1994........ 5.00 % 06/01/14
2,000 Massachusetts, 1994 Ser C (FGIC)......................................................... 6.75 11/01/12
3,000 New York City, New York, 1990 Ser D...................................................... 6.00 08/01/07
2,295 Pennsylvania, First Ser 1995 (FGIC)...................................................... 5.50 05/01/12
2,000 Shelby County, Tennessee, Refg 1995 Ser A................................................ 5.625 04/01/12
2,000 Washington, Ser 1995 A................................................................... 5.80 09/01/08
- -----------
13,295
- -----------
EDUCATIONAL FACILITIES REVENUE (8.3%)
2,000 District of Columbia, Georgetown University Ser 1993..................................... 5.375 04/01/23
2,000 Massachusetts Health & Educational Facilities Authority, Boston College Ser K............ 5.25 06/01/18
1,500 Rutgers - The State University, New Jersey, Refg Ser R................................... 6.50 05/01/13
2,000 New York State Dormitory Authority, State University Ser 1989 B.......................... 0.00 05/15/03
1,000 Ohio Higher Educational Facility Commission, Oberlin College Ser 1993.................... 5.375 10/01/15
- -----------
8,500
- -----------
ELECTRIC REVENUE (6.9%)
1,000 Northern California Power Agency, Geothermal #3-1987 Refg Ser A
(Partial Crossover Refunded)........................................................... 7.00 07/01/07
2,000 Nebraska Public Power District, Power Supply 1993 Ser.................................... 6.125 01/01/15
2,000 Intermountain Power Agency, Utah, Refg 1985 Ser H........................................ 6.00 07/01/21
3,000 Washington Public Power Supply System, Proj #2 Refg Ser 1994 A (FGIC).................... 0.00 07/01/09
- -----------
8,000
- -----------
HOSPITAL REVENUE (7.4%)
2,000 Birmingham - Carraway Special Care Facilities Financing Authority, Alabama, Carraway
Methodist Health Systems Ser 1995 A (Connie Lee)....................................... 6.25 08/15/09
2,000 Clermont County, Ohio, Mercy Health Ser 1991 (AMBAC)..................................... 6.733 10/05/21
2,500 North Central Texas Health Facilities Development Corporation, University Medical Center
Inc Ser 1989........................................................................... 8.20 04/01/19
- -----------
6,500
- -----------
INDUSTRIAL DEVELOPMENT/POLLUTION CONTROL REVENUE (8.0%)
700 Connecticut Development Authority, Bridgeport Hydraulic Co Refg Ser 1990................. 7.25 06/01/20
1,200 Michigan Strategic Fund, Ford Motor Co Refg Ser 1991 A................................... 7.10 02/01/06
1,000 Claiborne County, Mississippi, Middle South Energy Inc Ser C............................. 9.875 12/01/14
2,000 Ohio Water Development Authority, Dayton Power & Light Co Collateralized Refg 1992 Ser
A...................................................................................... 6.40 08/15/27
1,500 Matagorda County Navigation District #1, Texas, Central Power & Light Co Collateralized
Ser 1984 A............................................................................. 7.50 12/15/14
500 Russell County Industrial Development Authority, Virginia, Appalachian Power Co Ser G.... 7.70 11/01/07
- -----------
6,900
- -----------

<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -----------
<C> <C>

$ 2,000 $ 1,957,500
2,000 2,268,020
3,000 3,013,230
2,295 2,359,054
2,000 2,087,740
2,000 2,105,560
--------------
- -----------
13,791,104
13,295
--------------
- -----------

2,000 1,907,760
2,000 1,968,840
1,500 1,636,755
2,000 1,372,400
1,000 1,006,330
--------------
- -----------
7,892,085
8,500
--------------
- -----------

1,000
1,030,540
2,000 2,105,240
2,000 2,000,220
3,000 1,472,370
--------------
- -----------
6,608,370
8,000
--------------
- -----------

2,000
2,186,660
2,000 2,199,400
2,500
2,642,675
--------------
- -----------
7,028,735
6,500
--------------
- -----------

700 751,905
1,200 1,379,196
1,000 1,147,730
2,000
2,113,740
1,500
1,670,205
500 555,170
--------------
- -----------
7,617,946
6,900
--------------
- -----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995, CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE
- ------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MORTGAGE REVENUE - MULTI-FAMILY (1.5%)
$ 1,000 Michigan Housing Development Authority, Rental 1992 Ser A................................ 6.60 % 04/01/12
340 Pennsylvania Housing Finance Agency, Moderate Rehabilitation - Section 8 Assisted Issue
B...................................................................................... 9.00 08/01/01
- -----------
1,340
- -----------
MORTGAGE REVENUE - SINGLE FAMILY (3.2%)
2,000 Alaska Housing Finance Corporation, Governmental 1995 Ser A (MBIA)....................... 5.875 12/01/24
970 Maricopa County Industrial Development Authority, Arizona, Refg
1991 Ser A............................................................................. 7.50 08/01/12
- -----------
2,970
- -----------
PUBLIC FACILITIES REVENUE (3.3%)
1,000 California Public Works Board, Corrections 1993 Ser D.................................... 5.375 06/01/12
1,000 Hennepin County, Minnesota, Ser 1991 COPs................................................ 6.80 05/15/17
1,000 Puerto Rico Infrastructure Financing Authority, Special Tax Ser 1988 A................... 7.90 07/01/07
- -----------
3,000
- -----------
TRANSPORTATION FACILITIES REVENUE (15.9%)
2,000 Los Angeles County Transportation Commission, California, Sales Tax Ser 1991 B........... 6.50 07/01/13
2,000 Lee County, Florida, Ser 1995 (MBIA)..................................................... 5.75 10/01/22
3,500 Kentucky Turnpike Authority, Resource Recovery Road 1987 Ser A BIGS...................... 0.00+ 07/01/06
2,000 Ohio Turnpike Commission, 1994 Ser A..................................................... 5.75 02/15/24
2,000 Puerto Rico Highway & Transportation Authority, Refg Ser X............................... 5.25 07/01/21
3,000 Texas Turnpike Authority, Dallas North Tollway/President George Bush Turnpike Refg Ser
1995 (FGIC) (WI)....................................................................... 5.25 01/01/23
- -----------
14,500
- -----------
WATER & SEWER REVENUE (16.6%)
2,000 Phoenix Civic Improvement Corporation, Arizona, Jr Lien Water Ser 1994................... 5.45 07/01/19
3,000 Chicago, Illinois, Wastewater Ser 1995 (FGIC)............................................ 5.125 01/01/25
2,000 Boston Water & Sewer Commission, Massachusetts, 1992 Ser A............................... 6.00 11/01/15
1,500 Massachusetts Water Resource Authority, 1993 Ser C....................................... 5.25 12/01/08
2,000 Suffolk County Industrial Development Agency, New York, Southwest Sewer Ser 1994
(FGIC)................................................................................. 4.75 02/01/09
1,000 Columbus, Ohio, Sewerage Refg Ser 1992................................................... 6.25 06/01/08
Spartanburg, South Carolina, Water Impr
1,250 Refg Ser A 1992........................................................................ 6.25 06/01/12
1,000 Refg Ser A 1992........................................................................ 6.25 06/01/17
2,000 Metropolitan Government of Nashville & Davidson County, Tennessee,
Refg of 1986........................................................................... 5.50 01/01/16
- -----------
15,750
- -----------

<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -----------
<C> <C>

$ 1,000 $ 1,044,440
340
348,197
--------------
- -----------
1,392,637
1,340
--------------
- -----------

2,000 2,010,960
970
1,034,825
--------------
- -----------
3,045,785
2,970
--------------
- -----------

1,000 979,140
1,000 1,101,840
1,000 1,110,470
--------------
- -----------
3,191,450
3,000
--------------
- -----------

2,000 2,139,340
2,000 2,058,400
3,500 3,993,570
2,000 2,035,180
2,000 1,921,280
3,000
2,961,600
--------------
- -----------
15,109,370
14,500
--------------
- -----------

2,000 2,000,000
3,000 2,901,090
2,000 2,007,760
1,500 1,513,965
2,000
1,933,660
1,000 1,093,440

1,250 1,327,000
1,000 1,056,000
2,000
2,000,000
--------------
- -----------
15,832,915
15,750
--------------
- -----------
</TABLE>

TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $84,425,372)....................................................................................
90,255
- -----------

SHORT-TERM MUNICIPAL OBLIGATION (3.7%)
$ 3,500 Harris County Health Facilities Development Corporation, Texas, Methodist Hospital Ser
1994 (Demand 01/02/96) (Identified Cost $3,500,000).................................... 6.00*% 12/01/25
- -----------

<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -----------
<C> <C>
$ 1,500 $ 1,702,155
--------------
- -----------
2,000 2,297,060
2,000 2,286,380
2,000 2,262,640
2,000 2,297,060
--------------
- -----------
9,143,140
8,000
--------------
- -----------
90,255 92,355,692
- ----------- --------------
$ 3,500
$ 3,500,000
--------------
- -----------

$ 93,755 TOTAL INVESTMENTS (IDENTIFIED COST $87,925,372) (A).......................... 100.7% 95,855,692
- -----------
- -----------

LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS............................... (0.7) (625,021)
----- -----------

NET ASSETS................................................................... 100.0% $95,230,671
----- -----------
----- -----------

<FN>
- ---------------------
BIGS Bond Income Growth Security.
COPs Certificates of Participation.
WI Security purchased on a when issued basis.
+ Currently a zero coupon bond; will convert to 8.50% on July 1, 1997.
++ Prerefunded to call date shown.
* Current coupon of variable rate security.
(a) The aggregate cost for federal income tax purposes is $87,925,372; the
aggregate gross unrealized appreciation is $7,971,431 and the aggregate
gross unrealized depreciation is $41,111, resulting in net unrealized
appreciation of $7,930,320.
BOND INSURANCE:
AMBAC AMBAC Indemnity Corporation.
Connie Lee Connie Lee Insurance Company.
FGIC Financial Guaranty Insurance Company.
MBIA Municipal Bond Investors Assurance Corporation.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995, CONTINUED

GEOGRAPHIC SUMMARY OF INVESTMENTS
Based on Market Value as a Percent of Net Assets
DECEMBER 31, 1995

<TABLE>
<S> <C>
Alabama.......... 2.3%
Alaska........... 2.1
Arizona.......... 5.6
California....... 4.4
Connecticut...... 0.8
District of
Columbia........ 2.0
Florida.......... 2.2%
Illinois......... 3.1
Kentucky......... 4.2
Maryland......... 6.8
Massachusetts.... 8.1
Michigan......... 2.6
Minnesota........ 3.6
Mississippi...... 1.2%
Nebraska......... 2.2
New Jersey....... 1.7
New York......... 8.4
Ohio............. 8.9
Pennsylvania..... 2.8
Puerto Rico...... 3.2
South Carolina... 2.5%
Tennessee........ 4.3
Texas............ 11.3
Utah............. 2.1
Virginia......... 0.6
Washington....... 3.7
-----
Total............ 100.7%
-----
-----
</TABLE>

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

STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995

<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $87,925,372)............................. $95,855,692
Cash........................................................ 435,951
Receivable for:
Interest................................................ 1,488,236
Investments sold........................................ 500,000
Shares of beneficial interest sold...................... 16,442
Prepaid expenses and other assets........................... 25,421
-----------

TOTAL ASSETS........................................... 98,321,742
-----------
LIABILITIES:
Payable for:
Investments purchased................................... 2,897,560
Shares of beneficial interest repurchased............... 58,886
Investment management fee............................... 40,020
Dividends and distributions............................. 23,637
Accrued expenses and other payables......................... 70,968
-----------
TOTAL LIABILITIES...................................... 3,091,071
-----------
NET ASSETS:
Paid-in-capital............................................. 87,176,078
Net unrealized appreciation................................. 7,930,320
Accumulated undistributed net investment income............. 25,987
Accumulated undistributed net realized gain................. 98,286
-----------
NET ASSETS............................................. $95,230,671
-----------
-----------

NET ASSET VALUE PER SHARE,
7,629,241 SHARES OUTSTANDING (UNLIMITED SHARES AUTHORIZED
OF $.01 PAR VALUE)........................................
$12.48
-----------
-----------
</TABLE>

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995

<TABLE>
<S> <C>
NET INVESTMENT INCOME:

INTEREST INCOME............................................. $ 5,581,901
-----------

EXPENSES
Investment management fee................................... 456,678
Transfer agent fees and expenses............................ 273,590
Professional fees........................................... 47,884
Shareholder reports and notices............................. 41,188
Registration fees........................................... 32,268
Trustees' fees and expenses................................. 21,335
Custodian fees.............................................. 5,162
Other....................................................... 11,639
-----------

TOTAL EXPENSES BEFORE EXPENSE OFFSET................... 889,744

LESS: EXPENSE OFFSET................................... (5,139)
-----------

TOTAL EXPENSES AFTER EXPENSE OFFSET.................... 884,605
-----------

NET INVESTMENT INCOME.................................. 4,697,296
-----------

NET REALIZED AND UNREALIZED GAIN:
Net realized gain........................................... 179,336
Net change in unrealized depreciation....................... 8,626,901
-----------

NET GAIN............................................... 8,806,237
-----------

NET INCREASE................................................ $13,503,533
-----------
-----------
</TABLE>

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

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income....................................... $ 4,697,296 $ 4,929,867
Net realized gain........................................... 179,336 53,865
Net change in unrealized appreciation/depreciation.......... 8,626,901 (11,074,926)
----------------- -----------------

NET INCREASE (DECREASE)................................ 13,503,533 (6,091,194)
----------------- -----------------

DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income....................................... (4,694,507) (5,253,876)
Net realized gain........................................... (134,761) (273,982)
----------------- -----------------

TOTAL.................................................. (4,829,268) (5,527,858)
----------------- -----------------
Net increase from transactions in shares of beneficial
interest.................................................. 151,008 1,759,547
----------------- -----------------

TOTAL INCREASE (DECREASE).............................. 8,825,273 (9,859,505)

NET ASSETS:
Beginning of period......................................... 86,405,398 96,264,903
----------------- -----------------

END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF
$25,987 AND $23,198, RESPECTIVELY)...................... $95,230,671 $ 86,405,398
----------------- -----------------
----------------- -----------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995

1. ORGANIZATION AND ACCOUNTING POLICIES

Dean Witter Select Municipal Reinvestment Fund (the "Fund") is registered under
the Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment objective is to provide a
high level of current income which is exempt from federal income tax, consistent
with the preservation of capital. The Fund was organized as a Massachusetts
business trust on June 1, 1983 and commenced operations on September 22, 1983.

The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures. Actual results could differ from
those estimates. 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.
Discounts are accreted and premiums are amortized over the life of the
respective securities. Interest income is accrued daily.

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.
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995, CONTINUED

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 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, 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, 1995 aggregated
$18,660,907 and $14,709,528, respectively.

Dean Witter Trust Company, an affiliate of the Investment Manager, is the Fund's
transfer agent. At December 31, 1995, the Fund had transfer agent fees and
expenses payable of approximately $31,000.
<PAGE>
DEAN WITTER SELECT MUNICIPAL REINVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995, CONTINUED

4. SHARES OF BENEFICIAL INTEREST

Transactions in shares of beneficial interest were as follows:

<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
---------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
Sold............................................................. 2,857,613 $ 34,313,758 3,172,307 $ 38,359,487
Reinvestment of dividends and distributions...................... 379,503 4,576,988 449,718 5,341,690
----------- -------------- ----------- ------------
3,237,116 38,890,746 3,622,025 43,701,177
Repurchased...................................................... (3,227,249) (38,739,738) (3,511,123) (41,941,630)
----------- -------------- ----------- ------------
Net increase..................................................... 9,867 $ 151,008 110,902 $ 1,759,547
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
</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
----------------------------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
- ----------------------------------------------------------------------------------------------------------------------------------

<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:

Net asset value,
beginning of
period.......... $ 11.34 $ 12.82 $ 12.12 $ 11.89 $ 11.25 $ 11.41 $ 11.08 $ 10.60 $ 11.85 $ 11.41
---------- --------- --------- ---------- --------- --------- ---------- --------- --------- ----------

Net investment
income.......... 0.62 0.65 0.67 0.70 0.71 0.70 0.68 0.70 0.72 0.76
Net realized and
unrealized gain
(loss).......... 1.16 (1.40) 0.75 0.32 0.62 (0.15) 0.33 0.49 (1.15) 1.31
---------- --------- --------- ---------- --------- --------- ---------- --------- --------- ----------

Total from
investment
operations...... 1.78 (0.75) 1.42 1.02 1.33 0.55 1.01 1.19 (0.43) 2.07
---------- --------- --------- ---------- --------- --------- ---------- --------- --------- ----------

Less dividends
and
distributions
from:
Net investment
income........ (0.62) (0.69) (0.67) (0.70) (0.69) (0.71) (0.68) (0.70) (0.72) (0.77)
Net realized
gain.......... (0.02) (0.04) (0.05) (0.09) -- -- -- (0.01) (0.10) (0.86)
---------- --------- --------- ---------- --------- --------- ---------- --------- --------- ----------

Total dividends
and
distributions... (0.64) (0.73) (0.72) (0.79) (0.69) (0.71) (0.68) (0.71) (0.82) (1.63)
---------- --------- --------- ---------- --------- --------- ---------- --------- --------- ----------

Net asset value,
end of period... $ 12.48 $ 11.34 $ 12.82 $ 12.12 $ 11.89 $ 11.25 $ 11.41 $ 11.08 $ 10.60 $ 11.85
---------- --------- --------- ---------- --------- --------- ---------- --------- --------- ----------
---------- --------- --------- ---------- --------- --------- ---------- --------- --------- ----------

TOTAL INVESTMENT
RETURN........... 16.00% (5.98)% 11.99% 8.88% 12.04% 5.27% 9.47% 11.42% (3.53)% 19.33%

RATIOS TO AVERAGE
NET ASSETS:
Expenses......... 0.97% 0.96% 1.02% 1.14% 1.20% 1.21% 1.40% 1.41% 1.36% 1.50%*

Net investment
income.......... 5.14% 5.34% 5.25% 5.79% 6.06% 6.12% 5.90% 6.27% 6.37% 6.30%

SUPPLEMENTAL DATA:
Net assets, end
of period, in
thousands....... $95,231 $86,405 $96,265 $75,918 $67,903 $60,304 $52,485 $44,769 $40,938 $38,058

Portfolio
turnover rate... 17% 18% 9% 13% 30% 22% 15% 13% 43% 35%
<FN>

- ---------------------
* 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, 1995, 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 at December 31, 1995 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.

PRICE WATERHOUSE LLP
1177 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10036
FEBRUARY 7, 1996

- --------------------------------------------------------------------------------
1995 FEDERAL TAX NOTICE (UNAUDITED)

During the year ended December 31, 1995, the Fund paid to the
shareholders $0.62 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, 1995, the
Fund paid to shareholders $0.02 per share from long-term capital
gains.
<PAGE>

TRUSTEES

Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. Manuel H. Johnson
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.

DEAN WITTER
SELECT MUNICIPAL
REINVESTMENT
FUND

[GRAPHIC]

ANNUAL REPORT
DECEMBER 31, 1995

<PAGE>

DEAN WITTER SELECT REINVESTMENT FUND
GROWTH OF $10,000

DATE TOTAL LEHMAN MUNI BOND
INDEX
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
December 31, 1985 $10,000 $10,000
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
December 31, 1986 $11,933 $11,931
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
December 31, 1987 $11,511 $12,111
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
December 31, 1988 $12,826 $13,342
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
December 31, 1989 $14,040 $14,781
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
December 31, 1990 $14,780 $15,859
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
December 31, 1991 $16,560 $17,784
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
December 31, 1992 $18,030 $19,353
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
December 31, 1993 $20,193 $21,729
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
December 31, 1994 $18,985 $20,606
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
December 31, 1995 $22,023(3) $24,202
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------

AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS 10 YEARS
------------------------------------
------------------------------------
16.00(1) 8.30(1) 8.21(1)

----------------------------------
----------------------------------
Fund Lehman(3)
---- ------
----------------------------------
----------------------------------

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

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, 1995.

(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. The Index is unmanaged and should not be
considered an investment.