You can trade or use your fishing rod. Another way is to buy the Magikarp from the man in P.C. Center just before M.T. Moon. $500 for Magikarp.
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Trade with water stone
Buy fresh water and give it to the guard
No. They were made after Pokemon Yellow.
You have to go to Celadon and go to the top of the mart where there are vending machines that you can get the fresh water from.
No, you cannot get Lugia on Pokemon Yellow.