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 region in 1907, the second after Porto. It is named after the Península Setúbal peninsula, which borders directly on the capital Lisbon. The large area encompasses the peninsula, but still extends 60 kilometres south along the Atlantic coast to the mouth of the Sado. The river flows through the eastern part of the area and exerts a great influence on the Atlantic Ocean by cool and very humid air currents. The Mediterranean climate is characterized by hot, dry summers and rainy winters. Only on the peninsula are the two DOC areas of Palmela and Setúbal (or Moscatel de Setúbal and Moscatel Roxo).
The vineyards cover a total of 20,000 hectares. The white wines must contain at least 50% of the varieties Arinto, Chardonnay, Fernão Pires, Malvasia Fina, Moscatel de Setúbal(Muscat d'Alexandrie) and Roupeiro(Síria) in any blend. For the remaining 50%, Antão Vaz, Esgana Cão(Sercial), Rabo de Ovelha, Sauvignon Blanc, Ugni Blanc(Trebbiano Toscano) and Trincadeira das Pratas are permitted.
The red wines must contain at least 50% of the varieties Aragonez(Tempranillo), Cabernet Sauvignon, Merlot, Moscatel Roxo (Muscat Blanc red variety), Periquita(Castelão Francês), Tinta Amarela(Trincadeira Preta) and Touriga Nacional in any blend. For the remaining 50% Alfrocheiro, Alicante Henri Bouschet, Bastardo, Carignan Noir(Mazuelo), Grand Noir, Monvedro, Moreto and Tinta Miúda(Graciano) are allowed.
The wines are produced dry, semi-sweet and also noble sweet. Well-known producers are Adega de Pegões, Caves Alianca, Fonseca, J. P. Vinhos (Fonseca), Quinta da Bacalhôa (Fonseca) and Quinta de Camarate (Fonseca).