This is a cool kid's story, but I doubt you'll be able to find it new, it was published in the 50s. I may be able to locate an electronic copy if you're interested.

http://www.imagedump.com/index.cgi?pick=get&tp=544184
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Everyone Poops

http://www.amazon.com/Everyone-Poops-My-Body-Science/dp/192913214X/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1231636510&sr=8-1

The Gas We Pass

http://www.amazon.com/Gas-We-Pass-Story-Science/dp/1929132158/ref=pd_bbs_sr_2?ie=UTF8&s=electronics&qid=1231636510&sr=8-2
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Anything Dr. Seuss. He's classic.
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There are many creative and fun stories I loved reading to my younger siblings when they were three!

1. If You Give a Mouse a Cookie by Laura Joffe Numeroff
This is a fun catchy story.
2. Go Away, Big Green Monster! by Ed Emberley
This is a good story for little children to feel empowered and control their fears.
3. Are You My Mother? by P.D. Eastman
This is great for three year olds because they can empathize with the main character who becomes separated from his mother.
4. Where the Wild Things Are by Maurice Sendak
This will build your creative and fun 3 year old's imagination.
Source(s):
1. http://search.barnesandnoble.com/If-You-Give-a-Mouse-a-Cookie/Laura-Joffe-N...
2. http://search.barnesandnoble.com/Go-Away-Big-Green-Monster/Ed-Emberley/e/97...
3. http://search.barnesandnoble.com/Are-You-My-Mother/P-D-Eastman/e/9780679890...
4. http://search.barnesandnoble.com/booksearch/results.asp?WRD=Where+the+Wild+...

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I am actually doing the same thing so i looked on Amazon age appropriate, then checked suggestions. Pick something that they will always learn and remember, while some are cute, i take great pride when a child points and says something we learned in a book, or recognizes a learned trait.
Source(s):
http://www.amazon.com/Baby-3-Childrens-Books/b/ref=amb_link_6320642_49?ie=U...
http://library.loudoun.gov/Default.aspx?tabid=82

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I read to the I babysit two three year old twins and read to them frequently (they own a marvelous collection). Top 15 books your 3 year old might love and learn a lot from are:

1. Don't Let the Pigeon Drive the Bus! by Mo Willems
2. The Park in the Dark by Martin Waddell and Barbara Firth (illustrator)
3. Hop on Pop by Dr. Seuss
4. Where the Wild Things Are by Maurice Sendak
5. The Very Hungry Caterpillar by Eric Carle
6. If You Give a Mouse a Cookie by Laura Joffe Numeroff
7. The Wonderful Pigs of Jillian Jiggs by Phoebe Gilman
8. Caps for Sale by Esphyr Slobodkina
9. In the Small, Small Pond by Denise Fleming
10. Two Little Trains by Margaret Wise Brown
11. Harold and the Purple Crayon by Crockett Johnson
12. Yellow Umbrella by Dong Il Sheen
13. The Gigantic Turnip by Alexei Tolstoy
14. The Gruffalo by Julia Donaldson and Axel Scheffler
15. The Tiger Who Came to Tea by Judith Kerr

Hope this helps! If anything, Winnie the Pooh by A.A. Milne and E.H. Shepherd is definitely a classic (aka my favorite lol)!
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"Animalia," by Graeme Base. Kids love it and I know adults who wouldn't live without it - ME, for one!
Source(s):
One of my favorite books ever. And I've read thousands!!

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