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Beat the water totem. I used Magnemite. He almost died but Light Screen, Charge Beam, Thunder Wave, and two X-Def got the job done.
In the process, Hooty hit the next level cap. I can still use him for the fire totem if I box him now. Of course, why would I want to use him for the fire totem? Now that I have a rod and can surf I can fill my team with water pokemon.