Like the United States, which is about the same size, Australia's winemaking regions are huddled into one or two pockets of the country. The state of South Australia, which produces about 60% of the country's wine, also has the most wineries and sub-regions, including McLaren Vale, Clare Valley, Coonawarra and Barossa Valley. New South Wales is home to the Hunter Valley, while the smaller, southern state of Victoria is best known for theYarra Valley. Head way west to the very large state of Western Australia and you'll find the tiny region of Margaret River at the southern tip.