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When strict Mrs. Derkman moves next door to third-grader Katie Carew, scares her friends away, and insists she keep her dog, Pepper, on a leash, Katie finds a non-magical solution to the problem.

Katie's teacher, Mrs. Derkman, hopes to win the Teacher of the Year contest, but her chances do not look good when Katie turns into her teacher and cannot keep a class full of out-of-control third-graders in line.

Katie and her friends, worried that Mr. G is leaving Cherrydale Elementary, devise a plan to convince him to stay, but when they put the plan into action, Katie learns his secret and realizes she and her friends have made a terrible mistake.