Tequila was first produced in the 16th century near the location of the City of Tequila, which was not officially established until 1606. A fermented beverage from the Agave plant, known as pulque was consumed in pre-columbian central Mexico before European contact.

When the Spanish Conquistators ran out of their own brandy, they began to distill agave to produce one of North Americas first indigenous distilled spirits. Tequila is produced primarily in the area surrounding the city of Tequila 65 km northwest of Guadalajara, and in the Jaliscan Highlands (Los Altos de Jalisco) of the central western state of Jalisco.

The distinction is that Tequila must use only Blue Agave plants rather than any type of Agave.

Today Mexico has a production of 270 million litres Tequila and exporting more than 213 million litres all around the globe.