Lavender Town started out as one of the many graveyards dotted around Kanto. Up until the 18th century, when the advancement of technologies resulted in many Pokemon graves being moved around to accommodate, it wasn't well known. However, in despair of their Pokemon, many trainers went on a pilgrimage to find a safe place away from the technological world of Kanto in order to bury their Pokemon. There are also rumors of children coming to Lavender Town specifically to commit suicide.
Their journey was not in vain, for they found a quiet location secreted in the mountains. The air was fresh and the mountains protected the majority of the graves from the elements. These made it the perfect place, and due to the large amount of pilgrims making their way through, a small community developed into what is now called Lavender Town. The name is derived from the discovery of lavender plants that were discovered among the graves, a flower that is rare anywhere else.
Lavender Town is situated at one end of Rock Tunnel and can also be accessed via Saffron City or Route 12. There is no wind because of the mountains and the only important landmark is Pokemon Tower.
Mr. Fuji and the Name Rater make their home here.
Once a simple graveyard, Pokemon Tower began its life hidden in the inside of a hollowed out cliff-face. Because of its protection from the elements, people quickly brought their Pokemon here, quickly filling up the location. New floors were ordered built, despite the complaints by certain workers who said they heard voices.
Five years ago, Team Rocket invaded the Tower in order to gather the skulls of Cubone to sell. As a result, they killed a mother Marowak who was protecting her child. Outraged, Mr. Fuji went to stop Team Rocket but he was captured. The mediums were possessed by ghost pokemon, and no one could do anything.
On that same day, people say the legendary trainer Red came and entered the tower. Thirty minutes later, he came out with Mr. Fuji, who said the Marowak spirit had been put to rest. Because of future risk, Mr. Fuji built a house in memory of Red, called Memorial House, where he took the graves underground. Safe forever.
At the time, the tower is now the Kanto radio tower.