D.E. Stevenson's Miss Buncle's Book
I basically cackled while reading most of this book--it's about a woman who is in somewhat dire financial straits (I think it is set in the early 1930s) so she has written a novel to try and make some money--but seeing as she has little imagination, she just wrote about all her neighbors and their lives, barely even disguising their names--though she is smart enough to use John Smith as a nom de plume! And the town is not happy with their portrayals. And it is hilarious and charming. This is the third book I've read by Stevenson and all three have been absolutely delightful. A-.