The Nagambie Lakes wine region is characterised by its deep red duplex soil, with traces of iron oxide overlaying sandy, alluvial soil deposited by the river system. The river system also plays a significant role in determining the climatic conditions. That is, moderate temperatures and less frosts than the neighbouring inland areas. Consequently, the vineyards have been situated close to the lakes and rivers to take full advantage of the milder conditions.
The grape growing industry dates back to the 1850s with claims that the oldest Shiraz and Marsanne vines in the world grow there. The region has a distinct French history when the early pioneers settled in the area. They planted Marsanne, Rroussanne, Viognier, Grenache, Shiraz and Mourvèdre (Mataro). These varieties are all signature French style grapes that originated in France's Rhône Valley.