It is in Cianwood. Right after you beat the gym leader and leave the gym you will get it.
Gym Leader Chuck; he uses a primeape and a poliwrath. Make sure to have something that is good against focus punch. It really got my typhlosion. Once you beat him, exit, and someone gives you fly. :)
It is a great way to get around! I also recommend to have a Pidgeotto or a Pidgeot, that knows Featherdance, so you can lower its attack and hit it good.
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HM 02 Fly is with the woman outside Cianwood City Gym.
That HM is not in the game. I'm sorry
HM07 Waterfall is found on the Ice Path.
There's a move deleter in blackthorn city he can remove hm moves.
you go to blackhorn city and there you will find a place there