In a medium size bowl, toss apples with sugar, flour, cinnamon, lemon juice, and water; spread evenly into a 8x8 inch pan. In another bowl, mix together flour, brown sugar, oats, and butter; spoon mixture evenly over apples.
In a heavy sauce pan over low heat, melt the caramels with the evaporated milk. Heat , stirring frequently, until mixture has a smooth consistency. Drizzle the caramel sauce over the top of the crumble.
Bake in preheated oven for about 45 minutes (apple mixture will bubble and topping will be golden brown).