At the very end of route 25, there is a house and a guy asks you to see certain Pokemon, show him the Pokemon and he gives you different stones, one of which is a water stone!
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Exchange Blue Shard with the Waterstone. You'll find waterstone in Abandoned Ship, too.
Its evolve to Vaporeon from eevee
There is no best Pokemon on Pokemon HeartGold.
there is no Pokemon Mansion in Heartgold.
They are not in Pokemon HeartGold