Type specific teams?

So... We have certain teams that are Water-specific, can this be made for any type, if a canonical reason for this is made?

I am pretty sure that Water only teams are because fish like pokemon cannot go onto land lol

Ciana is correct. Water bound pokemon often cannot venture onto land, for obvious reasons.
I do not think the other types are restricted as water types are, but if you can present one, I'm all ears.

I see. As a followup question, do our locations have to follow game locations only, or can we use Anime-only/made up locations? Such as... the forest city from the Celebi movie? It could be classified into Hoenn, since that was the region the team was in when they went there.

We try to stick to game canon as often as possible, since it's easier to keep track of in comparison to the anime, which often contradicts itself. So, all Team Locales need to stay within the most updated core games; FireRed, LeafGreen, HeartGold, SoulSilver, Ruby, Sapphire, Emerald, Diamond, Pearl, Platinum, Black, White, and whatever the newest third of the 5th gen trio to be. Pokemon Colisseum and Gale of Darkness are also included because of our story arch.

Would an island team, such as Citadark Isle, which would require an amphibious/flying capable pokemon, be allowed?

Since it's an island, and a fairly large one at that, that had multiple land-dwelling pokemon, it would be considered a normal team. Cinnabar is very similar, and is also a normal team. But yes, it would be allowed.

It really depends on the Team Leader, really. If you wish your team to explore the ruins of Citadark, then it would be a normal team. However, if your team wishes to explore the waters around it, then it would be a water-based team.

However, there were no indigeonous pokemon during Pokemon XD, so... is it far enough ahead that pokemon could have gotten there, or...?

There are many pokemon in places where they shouldn't technically be in this timeline, much due to the chaos the Epidemic instigated. There were a fair amount of trainers and Cipher goons on the island, and after the XD game, the waters and storms cleared, making easy travel possible to the island.

On the contrary, though, there were wild pokemon in the Poke Spots. I think there were 12 different species of wild pokemon you could catch.

So, yes, I would deem it possible.

There was also my fantastic blow up, with magically teleported Pokemon EVERYWHERE. lol.

So that could be a basis for a lot of Pokemon being where they shouldn't, like Orre.

IT WAS RATHER FANTASTIC, WASN'T IT.