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Margaret River, Western Australia, Australia. Margaret River is the major geographical indication wine region in southwest Western Australia. Margaret River wine region is made up predominately of boutique size wine producers; although winery operations range from the smallest crushing 3.5 tonne per year to the largest around 7000 tonne. Although the region produces just three percent of total Australian grape production, it produces over 20 percent of Australia's premium wine market. The principal grape varieties are fairly evenly split between red and white; Cabernet Sauvignon, Chardonnay, Sauvignon blanc, Sémillon, Shiraz, Merlot, Chenin blanc and Verdelho.