File No. 2-99356
                                              Rule No. 497(e)
 
                 STEIN ROE MUNICIPAL TRUST
            Stein Roe Municipal Money Market Fund
            Stein Roe Intermediate Municipals Fund
            Stein Roe Managed Municipals Fund
            Stein Roe High-Yield Municipals Fund

      Supplement to Prospectus dated November 1, 1995

     Wire Redemption Privilege.  Effective February 1, 1996, 
the Telephone Redemption by Wire Privilege (which was 
previously available only to shareholders of Municipal Money 
Market Fund and is described on pages 29 and 33 of the 
Prospectus) is available for shareholders of all Funds.  The 
Privilege permits you to request a redemption from your Fund 
account by phone and have the proceeds wired to your account 
at a commercial bank, previously designated by you, that is a 
member of the Federal Reserve System.  The wire fee 
(currently $3.50 per transaction) will be deducted from the 
amount wired.  If you also establish the Electronic Transfer 
Privilege, the bank account that you designate for both 
Privileges must be the same.  There is a $1,000 minimum and a 
$100,000 maximum amount on each Telephone Redemption by Wire 
for shareholders of Intermediate Municipals Fund, Managed 
Municipals Fund, and High-Yield Municipals Fund.

     Shareholder Proposals.  The Board of Trustees of Stein 
Roe Municipal Trust has called a special meeting of 
shareholders of each Fund for June 18, 1996.  Among other 
items, the Board has directed that shareholders of 
Intermediate Municipals Fund, Managed Municipals Fund, and 
High-Yield Municipals Fund consider replacing each Fund's 
current investment advisory agreement, which provides for 
both portfolio management and administrative services, with 
separate new agreements for each such service.  If approved 
by shareholders, the proposed new agreements will become 
effective on July 1, 1996.  The current and proposed fee 
schedules are as follows:

          Current 
          Fee Schedule            Proposed Fee Schedule 
          (dollar amounts    (dollar amounts in millions)
          in millions)       ------------------------------ 
          Management and        Management      Administrative        Total 
 Fund     Administrative Fee       Fee               Fee              Fees
- --------  -----------------   --------------  ----------------    ------------

Inter-
mediate .600% up to $100, .450% up to $100,.150% up to $100, .600% up to $100,
Munic-  .550% next $100,  .425% next $100, .125% next $100,  .550% next $100,
pals    .500% thereafter  .400% thereafter .100% thereafter  .500% thereafter
Fund

High-
Yield   .600% up to $100, .450% up to $100,.150% up to $100, .600% up to $100,
Munici- .550% next $100,  .425% next $100, .125% next $100,  .550% next $100,
pals    .500% thereafter  .400% thereafter .100% thereafter  .500% thereafter
Fund

Managed .600% up to $100, .450% up to $100,.150% up to $100, .600% up to $100
Munici- .550% next $100,  .425% next $100, .125% next $100,  .550% next $100, 
pals    .500% next $800,  .400% next $800, .100% next $800,  .500% next $800, 
Fund    .450% thereafter  .375% thereafter .075% thereafter  .450% thereafter

The new agreements would not result in a fee increase.  The 
provision of portfolio management and administrative services 
under separate agreements would facilitate future conversion 
of a Fund into the Master Fund/Feeder Fund structure.  (See 
discussion under The Funds in the Prospectus.)  Municipal 
Money Market Fund converted into a Feeder Fund in 1995.

     Shareholders of each Fund also are being asked to 
consider changes in fundamental investment restrictions 
regarding borrowing and lending that would permit the Fund to 
join with other Stein Roe Funds in an "interfund lending 
program."  

      The Date of this Supplement is April 17, 1996