Preheat the oven to 350°F (175°C).
In a medium bowl, toss apples with sugar, flour, cinnamon, lemon juice, and water. Spread evenly into a 8x8-inch pan.
In another bowl, mix flour, brown sugar, oats, and butter. Spoon mixture evenly over apples.
To make the caramel sauce: Place caramels and evaporated milk in a heavy saucepan over low heat. Cook, stirring frequently, until caramels have melted and sauce is smooth. Drizzle over crisp topping.
Bake until apple mixture bubbles and topping is golden brown, about 45 minutes.
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