Danny was wandering through what he thought to be Pallet town, but there were much more houses than in the game. Eventually by pure coincidence he arrived at the bottom of a hill Seeing as how the building on it looked exactly like the lab in the anime, he figured this must be it. He saw three other people waiting in front of it, but since he didn't know what to say, and didn't want to accidentally reveal that he was from another world he acted like he didn't notice them.