The Rainbow Children

Jenny, a lonely child, is staying with her Great Aunt Gwendoline during the school holidays. Aunt Gwendoline is a children's author and illustrator. Her aunt is illustrating her new children's book, The Rainbow Children. Jenny's imagination takes her into the characters in the book. They discover an echidna named Edna whose home is threatened by a bulldozer clearing the bush for a new road. Jenny helps her aunt write the book about The Rainbow Children.
There are six other stories in the book. In Beware of the docodile, Sam is a budding author and Emma finds courage to get help for her aunt and brother who are suffering from food poisoning.
William, in The Boy Who Told Fibs, learns it doesn't pay not to tell the truth.
The seven stories are suitable for children 4 - 8.