Tequila is produced only within approved regions of Mexico, and primarily in the state of Jalisco. Tequila production is concentrated in an area near the city of Guadalajara, Jalisco, specifically in or around the town of Tequila.
Other approved areas include certain villages in the Mexican states of Nayarit, Tamaulipas, Michoacan, and Guanajuato.
Some tequila products may be bottled outside of Mexico (mixtos). However, all critical production processes must take place within the approved areas by law.