Stripes of the Sidestep Wolf by Sonya Hartnett

Hartnett is an Australian writer and this book takes place in a small town in Australia that is slowly dying. Satchel O'Rye lives with his parents in the unnamed town, dying because the new highway takes people right past it. His parents refuse to recognize the fact that his father is suffering from dementia. While picking up wood in the outback, Satchel sees a strange creature; when he describes it to a local girl, Chelsea Piper, she discovers an astonishing fact, one that could save Satchel's beloved dog when he injures her by mistake.

Hartnett perfectly captures the feeling of the dying town by comparing it with Satchel's own sense of slowly dying under the weight of his father's illness. While the ending doesn't make everything hunky-dory, you do realize that Satchel, in the end, will be just fine.