Tequila in Mexico", except that it may be diluted with water for bottling in Canada. Similar to the law of Canada, the U.S. law (27 CFR 5.22 (g)) says that tequila must be "manufactured in Mexico in compliance with the laws of Mexico regulating the manufacture of Tequila for consumption in that country". Tequila Tequila () is a regional distilled beverage and type of alcoholic drink made from the blue agave plant, primarily in the area surrounding the city of Tequila, northwest of Guadalajara, and in the Jaliscan Highlands ("Los Altos de Jalisco") of the central western Mexican state of Jalisco.
Tequila fruitier-tasting tequila, while lowland agaves give the tequila an earthier flavor. Unlike other tequila production steps, fermentation is one of the few steps out of the control of human beings. Fermentation is the conversion of sugars and carbohydrates to alcohol through yeast in anerobic conditions, meaning that oxygen is not present during the process. Fermentation is also carried out in a non-aseptic environment which increases the bacterial activity of tequila. The participation of microorganisms from the environment (yeasts and bacteria) makes fermentation a spontaneous process which gives rise to many byproducts that contribute to the flavor and aroma of tequila.