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, Jalisco the native people and was much like what is called pulque today. By the time the Spanish arrived, the natives had begun to cultivate the plant. The Spanish first considered taking the plant back to Spain but decided to develop it and its product in Mexico. The Spanish introduced distillation to turn the native fermented mescal into what is now known as tequila. The first large-scale distillery was created in 1600 and over the colonial period demand for the drink resulted in some of the oldest, still-operating enterprises in this area such as: “La Riojeña”, founded in 1795; “El Tigre”