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 company leases space in a plant, the physical plant where the tequila was manufactured. Unlike wine that contains tannins which may change over time, even in a bottle if proper storage conditions are not met, spirituous liquors like tequila do not change much once they are bottled. Since tequila is a distilled liquor, it does not require strict storage conditions like wine does, and the same goes with most other distilled spirits such as whiskey, rum, or vodka. Furthermore, because the characteristics and certain quality (flavor, aroma, color, etc.) of the tequila are determined during the aging process inside wood