Pallet Town: The Adventure Begins
As Professor Oak will tell you, welcome to the wonderful world of Pokemon! Your adventure is just beginning!
And since your journey is just starting, you'll quickly find your home town, though where it all begins, is pretty insignificant. There are a few houses in small little Pallet, mainly yours and your soon to be Rival's, along with the Pokemon Lab.
Your mother is a sweetheart and will tell you to get on your way to the Professor, and will even heal your Pokemon later in the game when ever you should return home.
Unfortunately, you can't find Professor Oak until you try to leaving the town to the north and attempting to go into Wild Grasses without a Pokemon of your own. Oak will appear out of nowhere and escort you personally to the Lab.
Once there, after a bit of talk, you will meet his grandson, your Rival, and the two of you will be allowed to select your Starter Pokemon. Unlike Pokemon Red and Blue, however, there is only one Pokemon left on the table. You have the privilege, or so you think, of having that very Pokemon. But right before you claim it, your Rival comes and takes it for himself. Oak, with nothing left to do, gives you the Pokemon he saved you from in battle: Pikachu.
Pikachu - Unlike a regular old Pikachu, this one is different. This Pikachu will actually follow you outside of its PokeBall. It also cannot evolve, learns Thunderbolt at Level 25, and is the only Pikachu found in the game.
Now you might feel slighted that you didn't get a chance to have your pick at the original Starter Pokemon of the Kanto Region, but much like how the Anime Series has Ash get all the Starter Pokemon, you too will still have this same opportunity later in the game.
Immediately after both of your get your Pokemon, your Rival will challenge you to your first Pokemon Battle, revealing that he got an Eevee for his Starter Pokemon. Since both of your Pokemon are at Level 5, the battle can literally go either way. But this battle and one other are very important, as they will determine what Pokemon your Rival's Eevee will evolve into.
From there, after the dust has settled and the battle is over, the two of you go your separate ways, both beginning by heading to the route just north of the town, the same you tried going to before Oak came to your rescue.
Items In Pallet Town:
Potion- An early potion found in your PC.
Pokemon Found In Pallet Town In Pokemon Yellow (For Later In The Game):
Fishing With The Old Rod:
Magikarp - Level 5 - 100% Appearance Rate
Fishing With The Good Rod:
Poliwag - Level 10 - 50% Appearance Rate
Goldeen - Level 10 - 50% Appearance Rate
Fishing With Super Rod:
Staryu - Levels 5-10 - 60% Appearance Rate
Tentacool - Levels 10-20 - 40% Appearance Rate