Set before Henry finds Emma in episode 1.
The town of Storybrooke is a small town. Everyone knows everyone, or so they'd like to believe so. Mr. Gold walks down Main Street watching everyone go about his or her daily business. He then spies Mayor Regina Mills walking down the sidewalk on the opposite side. Behind her lagging are her 2 adopted children, Henry Mills and Katherine Mills. Both look miserable as they follow Regina into the community building. They are all dressed up and Mr. Gold smiles to himself. It is another town meeting and Regina has her children sit in on it sometimes believing that one day this town, this Storybrooke, will be theirs to run. Katherine, a slender tall girl with dark hair and bright blue eyes looks up and smirks at Mr. Gold. Not too many people in this town stand up to him; actually no one but the young teenager and Regina tend to push his buttons on many occasions. Mr. Gold thinks to him self 'this all better be worth it'. He then crosses the street and makes his way to the building.
Later that night Regina is standing in front of the mirror fixing her self up. She slaps some lipstick on and turns to her children sitting at the dinner table.
"I have some more late night paperwork to do at the office." Regina says sternly. "What are the rules?"
"No TV, yes homework." Henry replies looking up at his sister.
Regina turns to her daughter. "I expect your school work to be done this week."
"Yes mother." Katherine says with a hint of mischievousness in her eyes.
"All of it Katherine, not just one or two pieces, everything that you've missed as well." Regina warns. "If you do not there will be consequences."
"Yes mother." Katherine repeats her statement and looks down at one of her schoolbooks.
"I will be back at 9 o'clock. You know your bedtimes, I expect you to be in bed at that time."
"Yes mother," Katherine repeats.
"Yes mom." Henry says looking at his sister.
Regina puts her hand on Henry and smiles. She looks at Katherine. "I mean it Katherine, school work needs to get done. You will not make me look like a fool."
She turns and leaves the house. Katherine and Henry go to the window and watch as Regina pulls her car out and drives away. Katherine turns to Henry.
"You better be back before she gets home." She says grabbing her jacket.
"I will" Henry says grabbing his jacket and backpack.
Katherine stops her brother from leaving the house. "H." Henry looks at her. "I hope you find what you're looking for." She says. "And seriously you better not get caught and in trouble."
They hug and both leave to go about their own business while their mother has these little meetings.
Henry made his way to Boston, found Emma and she drove them back. Katherine is nowhere to be found when this all happens.
Emma finds herself laying on a caught not knowing how she got their. Beside her is a rough looking little man whistling.
Sheriff Graham enters escorting a young girl. "Katherine, sit here till I phone your mother." He goes over and lets Graham out. "LeRoy you made bail. Behave now."
"Seriously." Emma says behind the bars.
"Regina's drinks are a little stronger than we thought." Graham smiles.
"I wasn't drunk there was a wolf standing in the middle of the road." Emma replies looking at Graham through the bars.
"A wolf." Graham says unbelievingly.
Katherine laughs. "Speaking of wolves, did you enjoy your time at the animal shelter last night Graham?" She laughs and nearly falls out of the chair. Her attention is then drawn to the blonde behind bars. "You" She blinks her eyes making sure it isn't a figment of her imagination. "It can't be true." She whispers to herself shaking her head with confusion.
Regina comes into the room. "Graham, Henry's run away again and I can't find Katherine anywhere." Katherine slinks down into Grahams chair. Her attention is drawn to Emma in the cell walking right past Katherine sitting in Grahams chair. "What is she doing here? Do you know where he is?"
"Lady I haven't seen your kid since I've dropped him off at your house. Pretty good alibi." Emma says hanging onto the bars.
"Yeah well he wasn't in his room this morning." Regina replies.
"Did you try his friends?" Emma asks looking at Regina.
"He doesn't have any friends." Katherine says behind them forgetting that she should be quiet.
Regina spins and sees her daughter sitting in Grahams chair. "Katherine, what are you doing here? And why were you not watching Henry last night."
"It's not my job to watch him." Katherine replies angrily.
"Miss Swan my son is a loner, he doesn't really have any friends."
"Every kid has friend, have you checked his computer, if he was close to someone it'll be in his email."
"And you would know this how?"
"Finding people is what I do. How about this you guys let me out and I'll help you find him." Emma says with a smile on her face trying to convince the two.
Regina turns to her daughter. "Sheriff Graham, what has my daughter done this time?"
Graham pulls Regina aside and explains that Katherine was found walking late in the night a bit intoxicated. He found her on his way home from his shift at the animal shelter. Graham walks over and lets Emma out of jail.
Regina goes over to her daughter and pulls her up by the arm. "I will deal with you after we find Henry." She warns. "This type of behavior will not be tolerated, especially from one of MY children. Do you understand me?" Regina's tone is full of anger and disappointment.
"Yes mother." Katherine yanks her arm from Regina's grip. "Wouldn't want to ruin that picture perfect family would we." She whispers as she walks in front of the group out the door.
Everyone hears this though.
Later that night after Henry is found and Mary Margaret Blanchard confronted. It is a quiet night at the Mayors house. Regina is in bed thinking her kids are asleep.
Henry is lying on his bed looking through his storybook when Katherine knocks on the door. Katherine quietly enters. "H, you awake?"
"Katie?" Henry replies looking up from his book. The look on Katherine's face worries him. "Katie, what's wrong?"
"You found her?" She says in disbelief. "You found your birth mother? How? Why?" Henry doesn't answer her first two questions.
"I had too." Henry quietly replies. "To break the curse."
"Henry, it's just a book." Katherine sits down on his bed looking at the book, looking at the picture of Charming and Snow. "They're just stories," Katherine says quietly more trying to convince herself than Henry. She starts to flip through the pages.
"It's true Katie." Henry lays his hand on his sister.
A loving looks passes between the too. Katherine and Henry sit together on the bed looking through the book.