MERRILL LYNCH OHIO MUNICIPAL BOND FUND OF MLMSMST
N-30D, 1998-09-18
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MERRILL LYNCH
OHIO MUNICIPAL
BOND FUND



FUND LOGO



Annual Report

July 31, 1998




This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance. Investment return and
principal value of shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.
Statements and other information herein are as dated and are subject
to change.





Merrill Lynch Ohio
Municipal Bond Fund
Merrill Lynch Multi-State
Municipal Series Trust
Box 9011
Princeton, NJ
08543-9011


Printed on post-consumer recycled paper



Merrill Lynch Ohio Municipal Bond Fund
July 31, 1998


TO OUR SHAREHOLDERS


The Municipal Market Environment
During the six months ended July 31, 1998, long-term tax-exempt
revenue bond yields were little changed. Throughout the period, the
near absence of inflationary pressures continued to support low
interest rates. However, consistently strong domestic economic
growth has caused some investors to fear that the Federal Reserve
Board will be forced eventually to raise short-term interest rates.
Such action would be taken to ensure that the US economy's present
rate of growth would decelerate before any inflationary pressures
could develop. These concerns pushed bond yields modestly higher by
late April.

However, the weakening financial conditions in many Asian countries
subsequently calmed investor fears of Federal Reserve Board
intervention, and fixed-income prices again moved higher. Long-term
uninsured municipal bond yields, as measured by the Bond Buyer
Revenue Bond Index, rose less than 5 basis points (0.05%) to end the
July quarter at 5.36%. As in late 1997 and early 1998, US Treasury
bond yields benefited from a "flight to quality" as foreign
investors were drawn to the relative safe haven of US Government
securities. Long-term US Treasury bond yields declined approximately
10 basis points to end the July quarter at 5.71%.

Thus far in 1998, the municipal bond market has experienced
unexpectedly strong supply pressures. These supply pressures have
prevented tax-exempt bond yields from declining as much as US
Treasury bond yields. During the first six months of 1998, more than
$153 billion in new tax-exempt bonds were underwritten, an increase
of almost 50% compared to the same period a year ago. During the
quarter ended July 31, 1998, municipalities issued over $75 billion
in new securities, an increase of more than 35% compared to the same
three-month period in 1997. Additionally, corporate issuers have
also viewed current interest rate levels as an opportunity to issue
significant amounts of taxable securities. Thus far in 1998, over
$500 billion in investment-grade corporate bonds have been
underwritten, an increase of more than 70% compared to the same
period a year ago. This sizeable corporate bond issuance has tended
to both support generally higher fixed-income yields and reduce the
demand for tax-exempt bonds.

However, the recent pace of new municipal bond issuance is unlikely
to be maintained. Continued increases in bond issuance will require
lower and lower tax-exempt bond yields to generate the economic
savings necessary for additional municipal bond refinancings.
Preliminary estimates for 1998 total municipal bond issuance are in
the $200 billion--$225 billion range. These estimates suggest that
recent supply pressures are likely to abate later in the year.
Earlier this year, municipal bond investors received approximately
$30 billion in coupon payments, bond maturities and proceeds from
early redemptions. The demand generated by these assets has helped
to offset the increase in supply seen thus far in 1998.

The continued impact of the Asian financial crisis on the US
domestic economy's future growth remains unclear. Current Asian
economic conditions continue to reflect ongoing weakness. Recent
trade data indicated that reduced US exports to these countries may
have lowered US economic growth by as much as 2% in the first
quarter of 1998. Since further trade deterioration is possible in
the coming months, we do not believe that the Federal Reserve Board
will be willing to raise interest rates, barring a dramatic and
unexpected resurgence of domestic inflation.

These factors suggest that over the near term, interest rates are
unlikely to rise by any appreciable amount. Recent supply pressures
have caused municipal bond yield ratios to rise relative to US
Treasury bond yields. At July 31, 1998, long-term tax-exempt bond
yields were at attractive yield ratios relative to US Treasury
securities of comparable maturities (over 90%), well in excess of
their expected range of 85%--88%. Tax-exempt bond yield ratios
rarely exceeded 90% in the 1980s and 1990s. Previous instances have
usually been associated with potential changes in Federal tax code
that would have adversely affected the tax-favored status of
municipal bonds. The present situation has developed largely because
of a temporary supply imbalance. These imbalances should soon be
corrected as tax-exempt bond issuance slows from its current rapid
pace later this year. Any further pressure on the municipal market
may well represent a very attractive investment opportunity.


Merrill Lynch Ohio Municipal Bond Fund
July 31, 1998


Portfolio Strategy
During the six-month period ended July 31, 1998, our investment
outlook for Merrill Lynch Ohio Municipal Bond Fund was basically
constructive. The deterioration in the Asian economies helped keep
interest rates low, even in the face of strong domestic economic
growth. This combination of strong growth and low inflation kept
bond yields within a rather narrow trading range over the past six
months.

Issuance of new Ohio municipal bonds increased by more than 41%
compared to the same six-month period a year ago. Total municipal
issuance increased by approximately 48% over the same period.
Municipal bonds continued to underperform US Treasury securities
because of the large issuance of tax-exempt securities.

Throughout the six-month period, we maintained a fully invested
position. We used periods of volatility to add additional interest
rate-sensitive issues, and we invested in new issues to increase
call protection and increase the Fund's duration.

Looking ahead, we believe that the interest rate outlook is positive
for the remainder of the year. We expect to maintain our current
strategy in order to participate in a lower rate environment. Any
signs of increasing interest rates or a resolution to Asian economic
problems will likely cause us to move toward a more defensive
position.


Fiscal Year in Review
During the fiscal year ended July 31, 1998, total municipal issuance
increased by more than 40% compared to the same period last year,
while Ohio municipal issuance increased by more than 50% over the
same period. Both the tax-exempt and US Treasury markets experienced
a decline in yields, although the greater increase in tax-exempt
issuance resulted in municipal performance lagging that of US
Treasury issues.

Given the narrow trading range of the municipal bond market, we
maintained a slightly defensive strategy going into the second half
of 1997. Several changes in the economy over the past 12 months
eased our concerns for a higher interest rate environment. The Asian
economic crisis and the continued low inflation in the domestic
economy caused us to reassess our previous posture, which had been
more conservative. We maintained a fully invested position and
purchased interest rate-sensitive issues in anticipation of lower
interest rates. These strategies produced total returns of +5.43%,
+4.90%, +4.79% and +5.42% for the Fund's Class A, Class B, Class C
and Class D Shares, respectively, for the year ended July 31, 1998.
This compares to the Lipper Analytical Services, Inc. average total
return of +5.19% for similar Ohio tax-exempt funds during the same
12-month period.


In Conclusion
We appreciate your ongoing interest in Merrill Lynch Ohio Municipal
Bond Fund, and we look forward to serving your investment needs in
the months and years to come.

Sincerely,



(Arthur Zeikel)
Arthur Zeikel
President



(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President



(Theodore R. Jaeckel)
Theodore R. Jaeckel
Vice President and Portfolio Manager


August 31, 1998





Merrill Lynch Ohio Municipal Bond Fund
July 31, 1998


PERFORMANCE DATA

About Fund Performance

Investors are able to purchase shares of the Fund through the
Merrill Lynch Select Pricing SM System, which offers four pricing
alternatives:

* Class A Shares incur a maximum initial sales charge (front-end
  load) of 4% and bear no ongoing distribution or account maintenance
  fees. Class A Shares are available only to eligible investors.

* Class B Shares are subject to a maximum contingent deferred sales
  charge of 4% if redeemed during the first year, decreasing 1% each
  year thereafter to 0% after the fourth year. In addition, Class B
  Shares are subject to a distribution fee of 0.25% and an account
  maintenance fee of 0.25%. These shares automatically convert to
  Class D Shares after approximately 10 years. (There is no initial
  sales charge for automatic share conversions.)

* Class C Shares are subject to a distribution fee of 0.35% and an
  account maintenance fee of 0.25%. In addition, Class C Shares are
  subject to a 1% contingent deferred sales charge if redeemed within
  one year of purchase.

* Class D Shares incur a maximum initial sales charge of 4% and an
  account maintenance fee of 0.10% (but no distribution fee).

None of the past results shown should be considered a representation
of future performance. Figures shown in the "Recent Performance
Results" and "Average Annual Total Return" tables assume
reinvestment of all dividends and capital gains distributions at net
asset value on the payable date. Investment return and principal
value of shares will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. Dividends paid to each
class of shares will vary because of the different levels of account
maintenance, distribution and transfer agency fees applicable to
each class, which are deducted from the income available to be paid
to shareholders.




<TABLE>
Recent Performance Results*
<CAPTION>
                                                                                                     Standardized
                                                    12 Month         3 Month      Since Inception     30-Day Yield
                                                  Total Return     Total Return     Total Return     As of 7/31/98
<S>                                                   <C>             <C>             <C>                <C>
ML Ohio Municipal Bond Fund Class A Shares            +5.43%          +2.10%          +58.13%            3.93%
ML Ohio Municipal Bond Fund Class B Shares            +4.90           +1.97           +53.06             3.59
ML Ohio Municipal Bond Fund Class C Shares            +4.79           +1.94           +31.41             3.48
ML Ohio Municipal Bond Fund Class D Shares            +5.42           +2.07           +33.98             3.83

<FN>
*Investment results shown do not reflect sales charges; results
 shown would be lower if a sales charge was included. Total
 investment returns are based on changes in net asset values for the
 periods shown, and assume reinvestment of all dividends and capital
 gains distributions at net asset value on the payable date. The
 Fund's inception dates are: Class A and Class B Shares, 2/28/92; and
 Class C and Class D Shares, 10/21/94.
</TABLE>



Merrill Lynch Ohio Municipal Bond Fund
July 31, 1998


PERFORMANCE DATA (continued)

Total Return Based on a $10,000 Investment--
Class A Shares and Class B Shares


A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class B Shares compared to growth of an investment
in the Lehman Brothers Municipal Bond Index. Beginning and ending
values are:


                                    2/28/92**          7/98

ML Ohio Municipal Bond Fund++--
Class A Shares*                     $ 9,600          $15,180

ML Ohio Municipal Bond Fund++--
Class B Shares*                     $10,000          $15,306

Lehman Brothers Municipal Bond 
Index++++                           $10,000          $15,934


Total Return Based on a $10,000 Investment--
Class C Shares and Class D Shares


A line graph depicting the growth of an investment in the Fund's
Class C Shares and Class D Shares compared to growth of an investment
in the Lehman Brothers Municipal Bond Index. Beginning and ending
values are:

                                    10/21/94**         7/98

ML Ohio Municipal Bond Fund++--
Class C Shares*                     $10,000          $13,141

ML Ohio Municipal Bond Fund++--
Class D Shares*                     $ 9,600          $12,862

Lehman Brothers Municipal Bond 
Index++++                           $10,000          $13,837



[FN]
   *Assuming maximum sales charge, transaction costs and other
    operating expenses, including advisory fees.
  **Commencement of operations.
  ++ML Ohio Municipal Bond  Fund invests primarily in long-term
    investment-grade obligations issued by or on behalf of the State of
    Ohio, its political subdivisions, agencies and instrumentalities and
    obligations of other qualifying issuers.
++++This unmanaged Index consists of long-term revenue bonds,
    prerefunded bonds, general obligation bonds and insured bonds. The
    starting date for the Index in the Class C & Class D Shares graph is
    from 10/31/94.
    Past performance is not predictive of future performance.




Merrill Lynch Ohio Municipal Bond Fund
July 31, 1998


PERFORMANCE DATA (concluded)


Average Annual Total Return

                                     % Return Without % Return With
                                       Sales Charge    Sales Charge**

Class A Shares*

Year Ended 6/30/98                         +8.00%         +3.68%
Five Years Ended 6/30/98                   +5.68          +4.82
Inception (2/28/92)
through 6/30/98                            +7.45          +6.76

[FN]
 *Maximum sales charge is 4%.
**Assuming maximum sales charge.


                                        % Return        % Return
                                       Without CDSC    With CDSC**

Class B Shares*

Year Ended 6/30/98                         +7.45%         +3.45%
Five Years Ended 6/30/98                   +5.14          +5.14
Inception (2/28/92)
through 6/30/98                            +6.91          +6.91

[FN]
 *Maximum contingent deferred sales charge is 4% and is reduced to 0%
  after 4 years.
**Assuming payment of applicable contingent deferred sales charge.


                                         % Return        % Return
                                       Without CDSC     With CDSC**

Class C Shares*

Year Ended 6/30/98                         +7.44%         +6.44%
Inception (10/21/94)
through 6/30/98                            +7.62          +7.62

[FN]
 *Maximum contingent deferred sales charge is 1% and is reduced to 0%
  after 1 year.
**Assuming payment of applicable contingent deferred sales charge.


                                     % Return Without % Return With
                                       Sales Charge    Sales Charge**

Class D Shares*

Year Ended 6/30/98                         +7.99%         +3.67%
Inception (10/21/94)
through 6/30/98                            +8.17          +6.98

[FN]
 *Maximum sales charge is 4%.
**Assuming maximum sales charge.




Merrill Lynch Ohio Municipal Bond Fund
July 31, 1998

<TABLE>
SCHEDULE OF INVESTMENTS                                                                               (in Thousands)
<CAPTION>
S&P        Moody's       Face                                                                                 Value
Ratings    Ratings      Amount                        Issue                                                 (Note 1a)

Ohio--95.8%
<S>        <S>         <C>        <S>                                                                           <C>
NR*        Baa1        $  900     Ashtabula County, Ohio, IDR, Refunding (Ashland Oil Inc.
                                  Project), Series A, 6.90% due 5/01/2010                                       $    970

AAA        Aaa          1,000     Avon, Ohio, Local School District, GO, UT, 6% due 12/01/2020 (b)                 1,084

NR*        NR*          4,000     Barberton, Ohio, Hospital Facilities Revenue Bonds (Barberton
                                  Citizens Hospital Co. Project), 7.25% due 1/01/2002 (h)                          4,454

AAA        Aaa          1,000     Cleveland, Ohio, Public Power System, Revenue Refunding Bonds,
                                  First Mortgage, Series 1, 5% due 11/15/2020 (d)                                    978

AAA        Aaa          3,665     Cleveland, Ohio, Water Works Revenue Bonds, First Mortgage,
                                  Series F-92 A, 6.25% due 1/01/2015 (b)                                           3,945

NR*        NR*          1,000     Cuyahoga County, Ohio, Health Care Facilities Revenue Refunding
                                  Bonds (Benjamin Rose Institute Project), 5.50% due 12/01/2028                      967

                                  Cuyahoga County, Ohio, M/F Revenue Bonds (Dalebridge Apartments), AMT (e):
NR*        Aaa          1,000       6.50% due 10/20/2020                                                           1,075
NR*        Aaa          2,850       6.60% due 10/20/2030                                                           3,063

BBB        NR*          1,000     Dayton, Ohio, Special Facilities Revenue Refunding Bonds
                                  (Emery Air Freight Corp./Emery Worldwide Air Inc.), Series F, 6.05%
                                  due 10/01/2009                                                                   1,083

A          A            2,120     Erie County, Ohio, Hospital Improvement Revenue Refunding Bonds
                                  (Firelands Community Hospital Project), 6.75% due 1/01/2015                      2,302

AAA        Aaa          1,200     Finneytown, Ohio, Local School District Revenue Bonds, UT, 5.80%
                                  due 12/01/2024 (c)                                                               1,283

AAA        Aaa          1,200     Huron County, Ohio, Human Services, Building Revenue Bonds, 7.25%
                                  due 12/01/2013 (d)                                                               1,415

NR*        Aaa          3,030     Kent, Ohio, M/F Housing Mortgage Revenue Bonds (Silver Meadows),
                                  AMT, 7.30% due 12/20/2036 (e)                                                    3,390

AAA        Aaa          1,740     Lakota, Ohio, Local School District, GO, UT, 7% due 12/01/2010 (b)               2,126

A          NR*          1,660     Loveland, Ohio, City School District, GO, UT, 6.65% due 12/01/2015               1,822

NR*        NR*          2,000     Lucas County, Ohio, Hospital Revenue Bonds (Flower Hospital), 6.125%
                                  due 12/01/2004 (h)                                                               2,210

AAA        Aaa          2,500     Mahoning County, Ohio, Hospital Facilities Revenue Refunding Bonds
                                  (YHA Inc. Project), Series A, 7% due 10/15/2002 (d)(h)                           2,773

A          A3           2,000     Moraine, Ohio, Solid Waste Disposal Revenue Bonds (General Motors Corp.
                                  Project), AMT, 6.75% due 7/01/2014                                               2,381
</TABLE>


PORTFOLIO ABBREVIATIONS


To simplify the listings of Merrill Lynch Ohio Municipal Bond Fund's
portfolio holdings in the Schedule of Investments, we have
abbreviated the names of many of the securities according to the
list below and at right.


AMT        Alternative Minimum Tax (subject to)
GO         General Obligation Bonds
HFA        Housing Finance Agency
IDR        Industrial Development Revenue Bonds
M/F        Multi-Family
PCR        Pollution Control Revenue Bonds
RIB        Residual Interest Bonds
RITES      Residual Interest Tax-Exempt Securities
RITR       Residual Interest Trust Receipts
S/F        Single-Family
UT         Unlimited Tax
VRDN       Variable Rate Demand Notes



Merrill Lynch Ohio Municipal Bond Fund
July 31, 1998

<TABLE>
SCHEDULE OF INVESTMENTS (concluded)                                                                   (in Thousands)
<CAPTION>
S&P        Moody's       Face                                                                                 Value
Ratings    Ratings      Amount                        Issue                                                 (Note 1a)

Ohio (concluded)
<S>        <S>         <C>        <S>                                                                           <C>
AAA        Aaa         $3,000     North Canton City, Ohio, School District Improvement Bonds,
                                  GO, UT, 6.70% due 12/01/2004 (b)(h)                                           $  3,450

AAA        Aaa          1,900     Ohio HFA, Mortgage Revenue Bonds, RITR, AMT, Series 15, 6.62%
                                  due 9/01/2019 (e)(g)(i)                                                          1,919

                                  Ohio HFA, Residential Mortgage Revenue Bonds, AMT (e):
AAA        NR*          1,750       Series A-1, 6.15% due 3/01/2029                                                1,852
AAA        NR*            965       Series B-2, 6.70% due 3/01/2025                                                1,035

AAA        Aaa            925     Ohio HFA, S/F Mortgage Revenue Bonds, AMT, RIB, Series B-4,
                                  9.842% due 3/31/2031 (e)(g)                                                      1,035

                                  Ohio State Air Quality Development Authority, Revenue
                                  Refunding Bonds:
NR*        Baa1         1,000       (Ashland Oil Inc. Project), 6.85% due 4/01/2010                                1,059
A1+        VMIG1++        600       (Cincinnati Gas & Electric), VRDN, Series A, 3.55% due 9/01/2030 (a)             600
AA-        Aa3          4,200       (Coll-Dayton Power & Light Project), Series B, 6.40% due 8/15/2027             4,538
AAA        Aaa          1,505       PCR (Ohio-Edison), Series B, 7.10% due 6/01/2018 (c)                           1,607

                                  Ohio State Higher Educational Facility Commission Revenue Bonds:
AA         Aa3          1,000       (Case Western Reserve University), Series D, 6.25% due 7/01/2014               1,152
NR*        NR*          1,000       (University of Findlay Project), 6.125% due 9/01/2016                          1,046

AA         Aa3          1,410     Ohio State Higher Educational Facility, Crossover Revenue
                                  Refunding Bonds (Case Western Reserve University), 6.25% due 10/01/2016          1,620

                                  Ohio State Water Development Authority, Pollution Control Facilities
                                  Revenue Bonds:
AAA        Aaa          1,000       Refunding (Pennsylvania Power Co. Project), 6.15% due 8/01/2023 (b)            1,094
AAA        Aaa          1,750       (Water Control Loan Fund--Water Quality), Series A, 5% due 6/01/2016 (d)       1,732

A          A2           2,000     Ohio State Water Development Authority, Solid Waste Disposal Revenue
                                  Bonds (North Star BHP Steel Project--Broken Hill), AMT, 6.45% due 9/01/2020      2,182

A-         NR*          2,000     Parma, Ohio, Hospital Improvement Revenue Refunding Bonds
                                  (Parma Community General Hospital Association), 5.375% due 11/01/2029            1,977

NR*        Aa3          1,000     Toledo Lucas County, Ohio, Port Authority, Development Revenue
                                  Refunding Bonds (Cargill Inc. Project), 5.90% due 12/01/2015                     1,054

AAA        Aaa          1,000     Upper Arlington, Ohio, City School District, UT, 5.25% due 12/01/2022 (d)        1,000

AAA        Aaa          2,000     Westerville, Ohio, Minerva Park and Blendon Joint Township,
                                  Hospital District Revenue Refunding Bonds (Saint Ann's Hospital),
                                  Series B, 7% due 9/15/2012 (b)(f)                                                2,298

Puerto Rico--3.8%

A1+        Baa1         2,500     Puerto Rico Commonwealth, Highway and Transportation Authority,
                                  Highway Revenue Bonds, RITES, Series X, 5.932% due 7/01/2004 (g)                 2,738

Total Investments (Cost--$66,849)--99.6%                                                                          72,309

Other Assets Less Liabilities--0.4%                                                                                  290
                                                                                                                --------
Net Assets--100.0%                                                                                              $ 72,599
                                                                                                                ========


<FN>
(a)The interest rate is subject to change periodically based upon
   prevailing market rates. The interest rate shown is the rate in
   effect at July 31, 1998.
(b)AMBAC Insured.
(c)FGIC Insured.
(d)MBIA Insured.
(e)GNMA Collateralized.

See Notes to Financial Statements.

(f)Escrowed to maturity.
(g)The interest rate is subject to change periodically and inversely
   based upon prevailing market rates. The interest rate shown is the
   rate in effect at July 31, 1998.
(h)Prerefunded.
(i)FSA Insured.
  *Not Rated.
 ++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
</TABLE>



Merrill Lynch Ohio Municipal Bond Fund
July 31, 1998


FINANCIAL INFORMATION
<TABLE>
Statement of Assets and Liabilities as of July 31, 1998
<S>                 <S>                                                                    <C>              <C>
Assets:             Investments, at value (identified cost--$66,848,573) (Note 1a)                          $ 72,309,070
                    Cash                                                                                           8,319
                    Receivables:
                      Securities sold                                                      $  1,458,256
                      Interest                                                                  967,557
                      Beneficial interest sold                                                   11,894        2,437,707
                                                                                           ------------
                    Prepaid expenses and other assets                                                              1,357
                                                                                                            ------------
                    Total assets                                                                              74,756,453
                                                                                                            ------------

Liabilities:        Payables:
                      Securities purchased                                                    1,982,516
                      Dividends to shareholders (Note 1e)                                        54,793
                      Investment adviser (Note 2)                                                35,986
                      Distributor (Note 2)                                                       26,895
                      Beneficial interest redeemed                                               19,642        2,119,832
                                                                                           ------------
                    Accrued expenses and other liabilities                                                        37,632
                                                                                                            ------------
                    Total liabilities                                                                          2,157,464
                                                                                                            ------------

Net Assets:         Net assets                                                                              $ 72,598,989
                                                                                                            ============

Net Assets          Class A Shares of beneficial interest, $.10 par value, unlimited number of
Consist of:         shares authorized                                                                       $     82,510
                    Class B Shares of beneficial interest, $.10 par value, unlimited number of
                    shares authorized                                                                            495,448
                    Class C Shares of beneficial interest, $.10 par value, unlimited number of
                    shares authorized                                                                             22,526
                    Class D Shares of beneficial interest, $.10 par value, unlimited number of
                    shares authorized                                                                             46,995
                    Paid-in capital in excess of par                                                          67,075,083
                    Accumulated realized capital losses on investments--net                                     (584,070)
                    Unrealized appreciation on investments--net                                                5,460,497
                                                                                                            ------------
                    Net assets                                                                              $ 72,598,989
                                                                                                            ============

Net Asset Value:    Class A--Based on net assets of $9,251,998 and 825,102 shares
                    of beneficial interest outstanding                                                      $      11.21
                                                                                                            ============
                    Class B--Based on net assets of $55,554,015 and 4,954,482 shares
                    of beneficial interest outstanding                                                      $      11.21
                                                                                                            ============
                    Class C--Based on net assets of $2,525,612 and 225,257 shares
                    of beneficial interest outstanding                                                      $      11.21
                                                                                                            ============
                    Class D--Based on net assets of $5,267,364 and 469,948 shares
                    of beneficial interest outstanding                                                      $      11.21
                                                                                                            ============


                    See Notes to Financial Statements.
</TABLE>




Merrill Lynch Ohio Municipal Bond Fund
July 31, 1998


FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
                                                                                                       For the Year Ended
                                                                                                           July 31, 1998
<S>                 <S>                                                                    <C>              <C>
Investment Income   Interest and amortization of premium and discount earned                                $  4,232,087
(Note 1d):

Expenses:           Investment advisory fees (Note 2)                                      $    404,947
                    Account maintenance and distribution fees--Class B (Note 2)                 288,004
                    Professional fees                                                            52,881
                    Accounting services (Note 2)                                                 47,538
                    Printing and shareholder reports                                             42,530
                    Transfer agent fees--Class B (Note 2)                                        26,495
                    Account maintenance and distribution fees--Class C (Note 2)                  14,147
                    Registration fees                                                            12,785
                    Account maintenance fees--Class D (Note 2)                                    4,876
                    Pricing fees                                                                  4,804
                    Custodian fees                                                                4,746
                    Trustees' fees and expenses                                                   4,172
                    Transfer agent fees--Class A (Note 2)                                         3,235
                    Transfer agent fees--Class D (Note 2)                                         1,793
                    Transfer agent fees--Class C (Note 2)                                         1,108
                    Other                                                                        10,316
                                                                                           ------------
                    Total expenses                                                                               924,377
                                                                                                            ------------
                    Investment income--net                                                                     3,307,710
                                                                                                            ------------

Realized &          Realized gain on investments--net                                                            378,211
Unrealized          Change in unrealized appreciation on investments--net                                       (114,833)
Gain (Loss) on                                                                                              ------------
Investments--Net    Net Increase in Net Assets Resulting from Operations                                    $  3,571,088
(Notes 1b, 1d & 3):                                                                                         ============


                    See Notes to Financial Statements.
</TABLE>



Merrill Lynch Ohio Municipal Bond Fund
July 31, 1998


FINANCIAL INFORMATION (continued)
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
                                                                                                   For the Year
                                                                                                   Ended July 31,
Increase (Decrease) in Net Assets:                                                            1998               1997
<S>                 <S>                                                                    <C>              <C>
Operations:         Investment income--net                                                 $  3,307,710     $  3,524,772
                    Realized gain on investments--net                                           378,211          803,076
                    Change in unrealized appreciation on investments--net                      (114,833)       2,393,293
                                                                                           ------------     ------------
                    Net increase in net assets resulting from operations                      3,571,088        6,721,141
                                                                                           ------------     ------------

Dividends to        Investment income--net:
Shareholders          Class A                                                                  (432,401)        (388,948)
(Note 1e):            Class B                                                                (2,538,683)      (2,827,393)
                      Class C                                                                  (101,635)        (113,014)
                      Class D                                                                  (234,991)        (195,417)
                                                                                           ------------     ------------
                    Net decrease in net assets resulting from
                    dividends to shareholders                                                (3,307,710)      (3,524,772)
                                                                                           ------------     ------------
Beneficial          Net decrease in net assets derived from beneficial
Interest            interest transactions                                                    (2,964,461)      (5,807,300)
Transactions                                                                               ------------     ------------
(Note 4):

Net Assets:         Total decrease in net assets                                             (2,701,083)      (2,610,931)
                    Beginning of year                                                        75,300,072       77,911,003
                                                                                           ------------     ------------
                    End of year                                                            $ 72,598,989     $ 75,300,072
                                                                                           ============     ============


                    See Notes to Financial Statements.
</TABLE>


Merrill Lynch Ohio Municipal Bond Fund
July 31, 1998


FINANCIAL INFORMATION (continued)
<TABLE>
Financial Highlights
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements.                                      Class A
                                                                                   For the Year Ended July 31,
Increase (Decrease) in Net Asset Value:                                  1998       1997      1996      1995      1994
<S>                 <S>                                               <C>        <C>       <C>       <C>        <C>
Per Share           Net asset value, beginning of year                $  11.17   $  10.70  $  10.56  $  10.50   $  11.02
Operating                                                             --------   --------  --------  --------   --------
Performance:        Investment income--net                                 .55        .55       .54       .55        .56
                    Realized and unrealized gain (loss) on
                    investments--net                                       .04        .47       .14       .06       (.43)
                                                                      --------   --------  --------  --------   --------
                    Total from investment operations                       .59       1.02       .68       .61        .13
                                                                      --------   --------  --------  --------   --------
                    Less dividends and distributions:
                      Investment income--net                              (.55)      (.55)     (.54)     (.55)      (.56)
                      In excess of realized gain on
                      investments--net                                      --         --        --        --       (.09)
                                                                      --------   --------  --------  --------   --------
                    Total dividends and distributions                     (.55)      (.55)     (.54)     (.55)      (.65)
                                                                      --------   --------  --------  --------   --------
                    Net asset value, end of year                      $  11.21   $  11.17  $  10.70  $  10.56   $  10.50
                                                                      ========   ========  ========  ========   ========

Total Investment    Based on net asset value per share                   5.43%      9.80%     6.56%     6.03%      1.10%
Return:*                                                              ========   ========  ========  ========   ========

Ratios to Average   Expenses, net of reimbursement                        .83%       .80%      .87%      .86%       .65%
Net Assets:                                                           ========   ========  ========  ========   ========
                    Expenses                                              .83%       .80%      .87%      .89%       .89%
                                                                      ========   ========  ========  ========   ========
                    Investment income--net                               4.92%      5.07%     5.03%     5.30%      5.12%
                                                                      ========   ========  ========  ========   ========

Supplemental        Net assets, end of year (in thousands)            $  9,252   $  8,506  $  7,281  $  7,270   $  9,373
Data:                                                                 ========   ========  ========  ========   ========
                    Portfolio turnover                                  35.46%     52.57%   118.21%   169.34%     44.83%
                                                                      ========   ========  ========  ========   ========

                   <FN>
                   *Total investment returns exclude the effects of sales loads.

                    See Notes to Financial Statements.
</TABLE>


Merrill Lynch Ohio Municipal Bond Fund
July 31, 1998


FINANCIAL INFORMATION (continued)
<TABLE>
Financial Highlights (continued)
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements.                                       Class B
                                                                                   For the Year Ended July 31,
Increase (Decrease) in Net Asset Value:                                  1998       1997      1996      1995      1994
<S>                 <S>                                               <C>        <C>       <C>       <C>        <C>
Per Share           Net asset value, beginning of year                $  11.17   $  10.70  $  10.56  $  10.50   $  11.02
Operating                                                             --------   --------  --------  --------   --------
Performance:        Investment income--net                                 .50        .49       .49       .49        .50
                    Realized and unrealized gain (loss) on
                    investments--net                                       .04        .47       .14       .06       (.43)
                                                                      --------   --------  --------  --------   --------
                    Total from investment operations                       .54        .96       .63       .55        .07
                                                                      --------   --------  --------  --------   --------
                    Less dividends and distributions:
                      Investment income--net                              (.50)      (.49)     (.49)     (.49)      (.50)
                      In excess of realized gain on
                      investments--net                                      --         --        --        --       (.09)
                                                                      --------   --------  --------  --------   --------
                    Total dividends and distributions                     (.50)      (.49)     (.49)     (.49)      (.59)
                                                                      --------   --------  --------  --------   --------
                    Net asset value, end of year                      $  11.21   $  11.17  $  10.70  $  10.56   $  10.50
                                                                      ========   ========  ========  ========   ========

Total Investment    Based on net asset value per share                   4.90%      9.25%     6.01%     5.49%       .59%
Return:*                                                              ========   ========  ========  ========   ========

Ratios to Average   Expenses, net of reimbursement                       1.34%      1.31%     1.38%     1.37%      1.16%
Net Assets:                                                           ========   ========  ========  ========   ========
                    Expenses                                             1.34%      1.31%     1.38%     1.40%      1.39%
                                                                      ========   ========  ========  ========   ========
                    Investment income--net                               4.41%      4.56%     4.52%     4.79%      4.61%
                                                                      ========   ========  ========  ========   ========

Supplemental        Net assets, end of year (in thousands)            $ 55,554   $ 60,072  $ 64,397  $ 64,068   $ 65,610
Data:                                                                 ========   ========  ========  ========   ========
                    Portfolio turnover                                  35.46%     52.57%   118.21%   169.34%     44.83%
                                                                      ========   ========  ========  ========   ========

                   <FN>
                   *Total investment returns exclude the effects of sales loads.

                    See Notes to Financial Statements.
</TABLE>


Merrill Lynch Ohio Municipal Bond Fund
July 31, 1998


FINANCIAL INFORMATION (continued)

<TABLE>
Financial Highlights (continued)
<CAPTION>
                                                                                      Class C
                                                                                                                For the
                                                                                                                 Period
The following per share data and ratios have been derived                                                       Oct. 21,
from information provided in the financial statements.                          For the Year Ended             1994++ to
                                                                                      July 31,                  July 31,
Increase (Decrease) in Net Asset Value:                                1998          1997           1996          1995
<S>                                                                 <C>           <C>            <C>            <C>
Per Share           Net asset value, beginning of period            $  11.17      $  10.70       $  10.56       $  10.09
Operating                                                           --------      --------       --------       --------
Performance:        Investment income--net                               .48           .48            .48            .37
                    Realized and unrealized gain on
                    investments--net                                     .04           .47            .14            .47
                                                                    --------      --------       --------       --------
                    Total from investment operations                     .52           .95            .62            .84
                                                                    --------      --------       --------       --------
                    Less dividends from investment income--net          (.48)         (.48)          (.48)          (.37)
                                                                    --------      --------       --------       --------
                    Net asset value, end of period                  $  11.21      $  11.17       $  10.70       $  10.56
                                                                    ========      ========       ========       ========

Total Investment    Based on net asset value per share                 4.79%         9.14%          5.90%          8.50%+++
Return:**                                                           ========      ========       ========       ========

Ratios to Average   Expenses                                           1.44%         1.41%          1.49%          1.50%*
Net Assets:                                                         ========      ========       ========       ========
                    Investment income--net                             4.31%         4.46%          4.42%          4.62%*
                                                                    ========      ========       ========       ========

Supplemental        Net assets, end of period (in thousands)        $  2,526      $  2,412       $  2,720       $    874
Data:                                                               ========      ========       ========       ========
                    Portfolio turnover                                35.46%        52.57%        118.21%        169.34%
                                                                    ========      ========       ========       ========

                 <FN>
                   *Annualized.
                  **Total investment returns exclude the effects of sales loads.
                  ++Commencement of operations.
                 +++Aggregate total investment return.

                    See Notes to Financial Statements.
</TABLE>


Merrill Lynch Ohio Municipal Bond Fund
July 31, 1998


FINANCIAL INFORMATION (concluded)

<TABLE>
Financial Highlights (concluded)
<CAPTION>
                                                                                      Class D
                                                                                                                For the
                                                                                                                 Period
The following per share data and ratios have been derived                                                       Oct. 21,
from information provided in the financial statements.                          For the Year Ended             1994++ to
                                                                                      July 31,                  July 31,
Increase (Decrease) in Net Asset Value:                                1998          1997           1996          1995
<S>                 <S>                                             <C>           <C>            <C>            <C>
Per Share           Net asset value, beginning of period            $  11.16      $  10.70       $  10.56       $  10.09
Operating                                                           --------      --------       --------       --------
Performance:        Investment income--net                               .54           .54            .53            .41
                    Realized and unrealized gain on
                    investments--net                                     .05           .46            .14            .47
                                                                    --------      --------       --------       --------
                    Total from investment operations                     .59          1.00            .67            .88
                                                                    --------      --------       --------       --------
                    Less dividends from investment income--net          (.54)         (.54)          (.53)          (.41)
                                                                    --------      --------       --------       --------
                    Net asset value, end of period                  $  11.21      $  11.16       $  10.70       $  10.56
                                                                    ========      ========       ========       ========

Total Investment    Based on net asset value per share                 5.42%         9.60%          6.45%          8.93%+++
Return:**                                                           ========      ========       ========       ========

Ratios to Average   Expenses                                            .93%          .90%           .97%           .99%*
Net Assets:                                                         ========      ========       ========       ========
                    Investment income--net                             4.82%         4.97%          4.93%          5.17%*
                                                                    ========      ========       ========       ========

Supplemental        Net assets, end of period (in thousands)        $  5,267      $  4,310       $  3,513       $  3,234
Data:                                                               ========      ========       ========       ========
                    Portfolio turnover                                35.46%        52.57%        118.21%        169.34%
                                                                    ========      ========       ========       ========

                 <FN>
                   *Annualized.
                  **Total investment returns exclude the effects of sales loads.
                  ++Commencement of operations.
                 +++Aggregate total investment return.

                    See Notes to Financial Statements.
</TABLE>



Merrill Lynch Ohio Municipal Bond Fund
July 31, 1998


NOTES TO FINANCIAL STATEMENTS


1. Significant Accounting Policies:
Merrill Lynch Ohio Municipal Bond Fund (the "Fund") is part of
Merrill Lynch Multi-State Municipal Series Trust (the "Trust"). The
Fund is registered under the Investment Company Act of 1940 as a non-
diversified, open-end management investment company. The Fund offers
four classes of shares under the Merrill Lynch Select Pricing SM
System. Shares of Class A and Class D are sold with a front-end
sales charge. Shares of Class B and Class C may be subject to a
contingent deferred sales charge. All classes of shares have
identical voting, dividend, liquidation and other rights and the
same terms and conditions, except that Class B, Class C and Class D
Shares bear certain expenses related to the account maintenance of
such shares, and Class B and Class C Shares also bear certain
expenses related to the distribution of such shares. Each class has
exclusive voting rights with respect to matters relating to its
account maintenance and distribution expenditures. The following is
a summary of significant accounting policies followed by the Fund.

(a) Valuation of investments--Municipal bonds and other portfolio
securities in which the Fund invests are traded primarily in the
over-the-counter municipal bond and money markets and are valued at
the last available bid price in the over-the-counter market or on
the basis of yield equivalents as obtained from one or more dealers
that make markets in the securities. Financial futures contracts and
options thereon, which are traded on exchanges, are valued at their
settlement prices as of the close of such exchanges. Short-term
investments with remaining maturities of sixty days or less are
valued at amortized cost, which approximates market value.
Securities and assets for which market quotations are not readily
available are valued at fair value as determined in good faith by or
under the direction of the Board of Trustees of the Trust, including
valuations furnished by a pricing service retained by the Trust,
which may utilize a matrix system for valuations. The procedures of
the pricing service and its valuations are reviewed by the officers
of the Trust under the general supervision of the Trustees.

(b) Derivative financial instruments--The Fund may engage in various
portfolio strategies to seek to increase its return by hedging its
portfolio against adverse movements in the debt markets. Losses may
arise due to changes in the value of the contract or if the
counterparty does not perform under the contract.

* Financial futures contracts--The Fund may purchase or sell
financial futures contracts and options on such futures contracts
for the purpose of hedging the market risk on existing securities or
the intended purchase of securities. Futures contracts are contracts
for delayed delivery of securities at a specific future date and at
a specific price or yield. Upon entering into a contract, the Fund
deposits and maintains as collateral such initial margin as required
by the exchange on which the transaction is effected. Pursuant to
the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as variation margin
and are recorded by the Fund as unrealized gains or losses. When the
contract is closed, the Fund records a realized gain or loss equal
to the difference between the value of the contract at the time it
was opened and the value at the time it was closed.

(c) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.

(d) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income is recognized on the accrual
basis. Discounts and market premiums are amortized into interest
income. Realized gains and losses on security transactions are
determined on the identified cost basis.

(e) Dividends and distributions--Dividends from net investment
income are declared daily and paid monthly. Distributions of capital
gains are recorded on the ex-dividend dates.


Merrill Lynch Ohio Municipal Bond Fund
July 31, 1998


NOTES TO FINANCIAL STATEMENTS (concluded)



2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is a
limited partner. The Fund has also entered into a Distribution
Agreement and Distribution Plans with Merrill Lynch Funds
Distributor ("MLFD" or "Distributor"), a division of Princeton Funds
Distributor, Inc. ("PFD"), which is a wholly-owned subsidiary of
Merrill Lynch Group, Inc.

FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee based upon the average daily
value of the Fund's net assets at the following annual rates: 0.55%
of the Fund's average daily net assets not exceeding $500 million;
0.525% of average daily net assets in excess of $500 million but not
exceeding $1 billion; and 0.50% of average daily net assets in
excess of $1 billion.

Pursuant to the Distribution Plans adopted by the Fund in accordance
with Rule 12b-1 under the Investment Company Act of 1940, the Fund
pays the Distributor ongoing account maintenance and distribution
fees. The fees are accrued daily and paid monthly at annual rates
based upon the average daily net assets of the shares as follows:

                                     Account     Distribution
                                 Maintenance Fee     Fee

Class B                              0.25%          0.25%
Class C                              0.25%          0.35%
Class D                              0.10%            --

Pursuant to a sub-agreement with the Distributor, Merrill Lynch,
Pierce, Fenner & Smith Inc. ("MLPF&S"), a subsidiary of ML & Co.,
also provides account maintenance and distribution services to the
Fund. The ongoing account maintenance fee compensates the
Distributor and MLPF&S for providing account maintenance services to
Class B, Class C and Class D shareholders. The ongoing distribution
fee compensates the Distributor and MLPF&S for providing shareholder
and distribution-related services to Class B and Class C
shareholders.

For the year ended July 31, 1998, MLFD earned underwriting discounts
and MLPF&S earned dealer concessions on sales of the Fund's Class A
and Class D Shares as follows:

                                       MLFD         MLPF&S

Class A                                $101         $1,185
Class D                                $147         $1,559

For the year ended July 31, 1998, MLPF&S received contingent
deferred sales charges of $63,536 and $2,502 relating to
transactions in Class B and Class C Shares, respectively.

Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., is the Fund's transfer agent.

Accounting services are provided to the Fund by FAM at cost.

Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, PSI, FDS, PFD, and/or ML & Co.


3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended July 31, 1998 were $25,184,884 and $27,054,765,
respectively.

Net realized gains for the year ended July 31, 1998 and net
unrealized gains as of July 31, 1998 were as follows:

                                     Realized     Unrealized
                                      Gains         Gains

Long-term investments.            $   378,211    $ 5,460,497
                                  -----------    -----------
Total                             $   378,211    $ 5,460,497
                                  ===========    ===========

As of July 31, 1998, net unrealized appreciation for Federal income
tax purposes aggregated $5,460,497, of which $5,461,479 related to
appreciated securities and $982 related to depreciated securities.
The aggregate cost of investments at July 31, 1998 for Federal
income tax purposes was $66,848,573.


4. Beneficial Interest Transactions:
Net decrease in net assets derived from beneficial interest
transactions was $2,964,461 and $5,807,300 for the years ended July
31, 1998 and July 31, 1997, respectively.


Merrill Lynch Ohio Municipal Bond Fund
July 31, 1998


Transactions in shares of beneficial interest for each class were as
follows:


Class A Shares for the Year                         Dollar
Ended July 31, 1998                   Shares        Amount

Shares sold                           214,291    $ 2,394,765
Shares issued to share-
holders in reinvestment of
dividends                              22,076        246,854
                                  -----------    -----------
Total issued                          236,367      2,641,619
Shares redeemed                      (172,776)    (1,932,706)
                                  -----------    -----------
Net increase                           63,591    $   708,913
                                  ===========    ===========


Class A Shares for the Year                         Dollar
Ended July 31, 1997                   Shares        Amount

Shares sold                           281,570   $ 3,056,459
Shares issued to share-
holders in reinvestment of
dividends                              16,807        182,136
                                  -----------    -----------
Total issued                          298,377      3,238,595
Shares redeemed                      (217,206)    (2,351,978)
                                  -----------    -----------
Net increase                           81,171    $   886,617
                                  ===========    ===========


Class B Shares for the Year                         Dollar
Ended July 31, 1998                   Shares        Amount

Shares sold                           638,961    $ 7,148,780
Shares issued to share-
holders in reinvestment of
dividends                             117,234      1,310,128
                                  -----------    -----------
Total issued                          756,195      8,458,908
Automatic conversion of
shares                                (11,946)      (134,491)
Shares redeemed                    (1,168,222)   (13,051,017)
                                  -----------    -----------
Net decrease                         (423,973)   $(4,726,600)
                                  ===========    ===========


Class B Shares for the Year                         Dollar
Ended July 31, 1997                   Shares        Amount

Shares sold                           764,584    $ 8,274,531
Shares issued to share-
holders in reinvestment of
dividends                             142,649      1,544,704
                                  -----------    -----------
Total issued                          907,233      9,819,235
Automatic conversion of
shares                                (40,791)      (443,365)
Shares redeemed                    (1,505,375)   (16,285,923)
                                  -----------    -----------
Net decrease                         (638,933)   $(6,910,053)
                                  ===========    ===========


Class C Shares for the Year                         Dollar
Ended July 31, 1998                   Shares        Amount

Shares sold                            68,147    $   764,188
Shares issued to share-
holders in reinvestment of
dividends                              5,920          66,153
                                  -----------    -----------
Total issued                           74,067        830,341
Shares redeemed                       (64,751)      (719,191)
                                  -----------    -----------
Net increase                            9,316    $   111,150
                                  ===========    ===========


Class C Shares for the Year                         Dollar
Ended July 31, 1997                   Shares        Amount

Shares sold                           102,395    $ 1,112,984
Shares issued to share-
holders in reinvestment of
dividends                               7,211         78,087
                                  -----------    -----------
Total issued                          109,606      1,191,071
Shares redeemed                      (147,865)    (1,601,650)
                                  -----------    -----------
Net decrease                          (38,259)   $  (410,579)
                                  ===========    ===========


Class D Shares for the Year                         Dollar
Ended July 31, 1998                   Shares        Amount

Shares sold                           140,789    $ 1,583,031
Automatic conversion
of shares                              11,950        134,491
Shares issued to share-
holders in reinvestment of
dividends                              6,109          68,375
                                  -----------    -----------
Total issued                          158,848      1,785,897
Shares redeemed                       (74,988)      (843,821)
                                  -----------    -----------
Net increase                           83,860    $   942,076
                                  ===========    ===========


Class D Shares for the Year                         Dollar
Ended July 31, 1997                   Shares        Amount

Shares sold                            48,281    $   522,360
Automatic conversion
of shares                              40,810        443,365
Shares issued to share-
holders in reinvestment of
dividends                               4,829         52,300
                                  -----------    -----------
Total issued                           93,920      1,018,025
Shares redeemed                       (36,222)      (391,310)
                                  -----------    -----------
Net increase                           57,698    $   626,715
                                  ===========    ===========


Merrill Lynch Ohio Municipal Bond Fund
July 31, 1998

<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT


The Board of Trustees and Shareholders,
Merrill Lynch Ohio Municipal Bond Fund of
Merrill Lynch Multi-State Municipal Series Trust:

We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of Merrill Lynch
Ohio Municipal Bond Fund of Merrill Lynch Multi-State Municipal
Series Trust as of July 31, 1998, the related statements of
operations for the year then ended and changes in net assets for
each of the years in the two-year period then ended, and the
financial highlights for each of the years in the five-year period
then ended. These financial statements and the financial highlights
are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and the
financial highlights based on our audits.

We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at July 31,
1998 by correspondence with the custodian and broker. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.

In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
Merrill Lynch Ohio Municipal Bond Fund of Merrill Lynch Multi-State
Municipal Series Trust as of July 31, 1998, the results of its
operations, the changes in its net assets, and the financial
highlights for the respective stated periods in conformity with
generally accepted accounting principles.

Deloitte & Touche LLP
Princeton, New Jersey
September 9, 1998
</AUDIT-REPORT>



IMPORTANT TAX INFORMATION (unaudited)


All of the net investment income distributions paid monthly by
Merrill Lynch Ohio Municipal Bond Fund during its taxable year ended
July 31, 1998 qualify as tax-exempt interest dividends for Federal
income tax purposes.

Additionally, there were no capital gains distributions made by the
Fund during the year.

Please retain this information for your records.



Merrill Lynch Ohio Municipal Bond Fund
July 31, 1998


OFFICERS AND TRUSTEES


Arthur Zeikel, President and Trustee
James H. Bodurtha, Trustee
Herbert I. London, Trustee
Robert R. Martin, Trustee
Joseph L. May, Trustee
Andre F. Perold, Trustee
Terry K. Glenn, Executive Vice President
Vincent R. Giordano, Senior Vice President
Donald C. Burke, Vice President
Kenneth A. Jacob, Vice President
Theodore R. Jaeckel Jr., Vice President
Gerald M. Richard, Treasurer
Robert E. Putney, III, Secretary

Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101

Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863




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