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The former Vinho regional area Terras do Sado in the central west of Portugal received this new designation in 2009. The area was already defined as a quality wine-growing region in 1907 as the second after Porto. It is named after the Península Setúbal peninsula immediately bordering the capital Lisbon. The large area encompasses the peninsula, but extends another 60 kilometres south along the Atlantic coast to the mouth of the Sado River. The river flows through the east of the area and, along with the Atlantic Ocean, exerts a great influence through cool and very humid air currents. The Mediterranean climate is characterised by hot, dry summers and rainy winters. Only on the peninsula are the two DOC areas Palmela and Setúbal (or Moscatel de Setúbal and Moscatel Roxo).

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