He gives you Everstone plus the different evolution stones if you show him the Pokemon he asks for. If he asks for a fire Pokemon, you'll get the fire stone, and so on.
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You need to get to Bills Grandpa in Cerulean (Kanto), he will ask for a pokemon. The first is Lickitung, the second is Oddish and the last is staryue, i think that you then get the water stone from him. I hope this help :)
bills grandfather asks you for the Pokemon with leafs on its head (oddish) cath it if u have it great show it to bills grandfather and he'll give you a leaf stone
hes on route 25 in kanto hes on route 25 in kanto
take staryu to bills grandfather take staryu to bills grandfather
bills house is north of cerulean