In 1185, when Palmela received its first charter, given by D. Afonso Henriques, first King of Portugal, it mentioned the vines and wine of the region, which confirms its wine-growing tradition. It is not known when the growing of vines started in Arrábida, but it is known that the Phoenicians and Greeks brought some varieties of grapes from the near East which were planted here, as the climate along with the land on the slopes of Arrábida, were considered amenable to the cultivation of wine.

The Peninsula of Setúbal is indeed a pioneering region in producing wine growing products of a recognised quality, as is the case with the Moscatel from Setúbal, a generous wine whose area of cultivation has been delimited since 1907 although it had been produced for a long time previously. The Winegrowing Region of the Peninsula of Setúbal is divided into three distinct categories: Palmela - D.O.C., Setúbal - D.O.C. and Terras do Sado - Vinho Regional. Mainly red grape varieties are present in the region, with around 80% of the varieties of wine, in particular in the council of Palmela.

The main grape variety is the Castelão. However, besides other national grape varieties, we have also seen the introduction of Chardonnay, Cabernet Sauvignon, Merlot, Syrah, Cabernet Blanc, and Pinot noir and blanc, amongst others. The white grape varieties most representative of the Region continue to be Fernão Pires and the Moscatel from Setúbal, the latter used for the generous wine of the same name.

This region is distinct in both soil and climate producing wines of different styles.
The climate is Mediterranean (300 hours of sun/month) marked by intense summer heat (average temp. 22ºC) and cooler damp winters (average temp. 10ºC).

The region is composed mainly sand and small rocks with low water retemption and lacking in minerals.