Penola is located 388 km south east of Adelaide and is in the heart of one of South Australia's most productive wine growing areas. Coonawarra lies just to the north and is renowned for the quality of its red wines.
The word Penola was the local Pinchunga Aboriginal name for "wooden house", which was the term used for the first pub, the Royal Oak, built in the district.
The town is also known as the central location in the life of Mary MacKillop (St Mary of the Cross), the first Australian saint.
The first Europeans to the area were the Austin brothers who arrived in 1840 and established a run of 109 square miles (282 square km). The first settlers were Scottish-born Alexander Cameron and his wife Margaret in January 1844 after obtaining an occupation licence. In April 1850 Cameron obtained 80 acres (0.3 square km) of freehold land, his station was on a pastoral lease, and established the private town of Panoola, later known as Penola.
Penola located in the heart of Coonawarra wine region. Along the road from Penola to Coonawarra (a distance of only 7 km) there are a total of 21 wineries. This is the result of an extraordinary situation where there are beautiful red soils (terra rossa) stretching 14 km and lying on top of limestone.
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