The Fairy-Tale Detectives (Sisters Grimm 1) by Michael Buckley
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Orphaned sisters Sabrina and Daphne are sent to live with their newly discovered grandmother, Relda Grimm, in the strange town of Ferryport Landing. The girls soon learn a family secret: that they are descendants of the famous Brothers Grimm, whose book of fairy tales is actually a history book. When a terrorizing giant goes on a rampage through the town, it's up to the Sisters Grimm to stop him and to solve the mystery of who set the giant loose in the first place. Was it Mayor Charming, formerly Prince Charming, who desperately wants his kingdom back? The Three Not-So-Little Pigs, the shifty town cops? Or one of the many other fairy-tale characters who seem to have it out for the Grimms?