Squirtle evolves through leveling up. Beginning at level 16, it evolves into Wartortle. (Then Wartortle evolves into Blastoise beginning at level 36). Blastoise is the the final evolution of the line beginning with Squirtle.
If an evolution is delayed (because the wild Pokemon chooses not to evolve, or the trainer cancels the evolution), the Pokemon will continue trying to evolve each time it levels up after the level listed. Holding an Everstone will prevent Pokemon from evolving through leveling up.
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You do not need to evolve Squirtle using an Evolution Stone. Squirtle evolves into Wartortle at level 16.
wartortle
Level 16
No, you cannot evolve Squirtle with a Water Stone.
Squirtle evolves at lv 16 into wartortle and at lv 36 at Blastoise .