This is where it all began, a once quiet, sleepy town with no claim to fame other than being the preferred environ of Professor Oak. With a seaside view, and no gym to speak of, this was a quiet place to conduct his research…
That was before the Giovanni Incident and the last three Grand Champions of the Pokemon League set forth from Pallet Town.
Now, Pallet City exists as one of the economic hubs of the region, relying almost totally on the interest and funds generated by Professor Oak's Lab and the Pallet City Gym. It is now considered a Kanto tradition for trainers challenging the league to begin in Pallet City with a conversation with Professor Oak, whether they require a starter or not.
Twice a year, Professor Oak allows successful applicants to come to Pallet City and receive a Free Pokedex, and a starting Pokemon Partner if they do not already have one.