Preheat the oven to 350 F (175 degree C).
Toss apples in a medium size bowl with sugar, flour, cinnamon, lemon juice, and water; spread evenly into a 8x8-inch pan.
Mix flour, brown sugar, oats, and butter together in another bowl; spoon mixture evenly over apples.
To make the caramel sauce: Place caramels and evaporated milk in a heavy sauce pan over low heat; cook, stirring frequently, until caramels have melted and sauce is smooth; drizzle over crisp topping.
Bake in the preheated oven until apple mixture bubbles and topping is golden brown, about 45 minutes.
