As her parents don't have the money for summer camp, Hannah Fairchild is forced to spend her summer in Greenwood Falls. Hannah describes the town as small, and very boring. She spends most of her time on her bike. However, things start to change for Hannah when she meets Danny Anderson, a boy with a knack for reckless stunts, and who happens to be her new neighbor. Danny is nice, and the two become fast friends. However, there are things about him that raise a lot of questions. For instance, the house he just moved into looks practically abandoned, and his tendency to disappear and reappear out of nowhere. Hannah begins to wonder if Danny could be a ghost, or if it's just her summer boredom getting to her.
While Danny might be odd, he's also getting in trouble around town, all through the pressure of his friends, Alan and Fred. The two boys force Danny to steal and vandalize property. Most of their actions are directed at Mr. Chesney, the town postmaster who everybody seems to hate. While Hannah follows Danny around for answers, the book gives us brief insights into what Greenwood Falls is like, including the houses, shops, and residents that live within it.
- The Fairchild family (deceased)
- Includes Hannah, her brothers Bill and Herb, and their mother and father.
- The Anderson family
- Includes Danny and his mother.
- Mr. Chesney
- Janey Pace
- Mrs. Quilty
- Alan Miller
- Fred Drake
- Josh Goodman
- Mr. Harder
- Mrs. Harder
Hannah's houseHouse where the Fairchild family lives. It is not given much description, beyond having a garage and a flower garden outside. The original house caught fire and burned down after a campfire in the backyard wasn't put out properly. It was later rebuilt and remains vacant.
Danny's houseHouse where Danny and his mother live. Hannah reveals it was originally owned by the Dodson family, who have since moved away.
Maple Avenue Middle SchoolSchool attended by Danny. As the book takes place during the summer, it is not visited.
Mrs. Quilty's houseRedbrick houses belonging to Hannah's neighbor, Mrs. Quilty. There is a flower garden in the front.
Post OfficeGreenwood Falls' post office. Hannah describes it as a white, two-story building with a flag flying above it.
BankGreenwood Falls' local bank. It is briefly mentioned by Hannah, and not visited during the story.
Grocery StoreSmall grocery store mentioned briefly by Hannah. It is not visited during the story.
Gas StationLocation briefly mentioned by Hannah during her walk around town.
DinerA restaurant simply called "Diner". It is briefly mentioned by Hannah, and not visited during the story.
Harder's Ice-Cream ParlorIce-cream shop owned by Mr. Harder. Hannah describes the shop as having a red, neon ice-cream cone in its window.
BarbershopBarbershop mentioned briefly by Hannah. There is no description given, but one of the barbers is revealed to be named Ernie.
Mr. Chesney's houseHouse belonging to the town postmaster, Mr. Chesney. In front of the house is a mailbox that looks like a swan. In the book's conclusion, Danny and his friends set off a stinkbomb inside the house, causing it to catch fire.
- In the television adaptation of The Ghost Next Door, Hannah mentions a street named Cordina Way, which was likely named after the show's producer, Lena Cordina.
- The book mentions Greenwood Falls having an Elm Street, which is a possible reference to the horror movie franchise, A Nightmare on Elm Street.
- The building used to portray the post office in the episode is located at 2930 Lake Shore Blvd W, Etobicoke, ON M8V 1J4, Canada. The building is currently not a post office, as it is being used by a private business.