The former Vinho Regional area Terras do Sado in the central west Portugal received this new name in 2009. The area was already defined in 1907 as the second after the Porto as a quality wine-growing area. It is named after the peninsula Península Setúbal, immediately adjacent to the capital Lisbon. The large area covers the peninsula, but extends for another 60 kilometers to the south along the Atlantic coast to the mouth of the Sado. The river flows through the east of the area and exerts a large influence by cool and very humid air currents beside the Atlantic. The Mediterranean climate is characterized 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).
The vineyards cover a total of 20,000 hectares of vineyards. The white wines must be at least 50% of the varieties Arinto. Chardonnay. Fernão Pires. Malvasia Fina, Moscatel de Setúbal ( Muscat d'Alexandrie ) and Roupeiro ( Síria ) contained in any blend. For the remaining 50% are Antao Vaz, Esgana Cão ( Sercial ) Rabo de Ovelha. Sauvignon Blanc, Ugni Blanc ( Trebbiano Toscano ) and Trincadeira das Pratas allowed.
The red wines must contain at least 50% of the varieties Aragonez ( Tempranillo ) Cabernet Sauvignon. Merlot, Moscatel Roxo (reddish variety Muscat Blanc ), Periquita ( Castelão Francês ), Tinta Amarela ( Trincadeira Preta ) and Touriga Nacional contained in any blend. For the remaining 50% are Alfrocheiro. Alicante Henri Bouschet. Bastardo, Carignan Noir ( mazuelo ) Grand Noir. Monvedro. Moreto and Tinta Miúda ( Graciano ) allowed.
The wines are dry, semi-sweet and noble sweet expanded. Well-known producers are Adega de Pegões, Caves Alianca, Fonseca, JP Vinhos (Fonseca), Quinta da Bacalhôa (Fonseca) and Quinta de Camarate (Fonseca).