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So I caught the Gyarados, have the 6 gym badges, and have played the safari game. Where can I find Lance? And for some reason it stopped raining and the water level was lowered.

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did you complete the rocket hideout in Mahogany Town?
After you catch  Gyarados Lance will be waiting for you on the shore near the Lake of Rage sign. As for the water level, it can be lowered on certain days when it stops raining.

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