Vermilion city
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go to the 3rd gym badge place battle the gym leader, beat him , talk to officer jenny for your squirtle.
The 7th gym leader in Pokemon yellow is in Cinnebar Island, which is south of Pallet Town. You need a Pokemon with Surf to get there.
No, sorry!
The Pokemon Mansion is on Cinnabar Island, west (left) of the Pokemon Gym.
if you got it from the Pokemon mansion it opens the cinabar Pokemon gym