The Collaborative International Dictionary of English v.0.48:
Sister-in-law \Sis"ter-in-law`\, n.; pl. Sisters-in-law. The sister of one's husband or wife; also, the wife of one's brother; sometimes, the wife of one's husband's or wife's brother. [1913 Webster]WordNet (r) 3.0 (2006):
sister-in-law n 1: the sister of your spouse