Forgotten title of a mystery/scifi/horror book with underground race, by a female

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Carolyn

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author? My mom and I read a book in about 1999 that we've been searching for again lately. It was a few years old by that point...

A woman moves to a small town in the hills/mountains. Someone or something kills and skins her small dog- she thinks that the townspeople must want her gone. Eventually she finds out that it was this race of pale inbred underground people. I think she tries to communicate with them at some point. It was pretty creepy and strange, but well done.
 
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