Chile first enacted laws in 1985 that controlled how wine would be labeled. The laws stated that labels must include information about the producer, the volume of the bottle, the alcohol content, and whether or not so called table grapes were used. Table grapes are grapes not designed to be used in wine, but left out on the table to be eatens by passers by. Chaptalization was forbidden, but acidification was allowed.

In 1995, Chile enacted more laws designed to protect the various subregions of Chile and to stipulate rules for which grape varieties are allowed. 23 grape varieties were included, and Pais, the indigenous mission grape, was not one of them. The laws also stated that if a label mentions a region and a grape variety, the wine must be made of at least 75% of the stated grape variety from the stated region. The terms Riserva and Gran Riserva were allowed, but unlike in Spain, there are no rules for how long the wines must be aged or how the wines are produced. In effect the terms vary by winemaker, much like "reserve" wines in California.

Chile's wine history dates back to the 16th century, when Fransisco de Carabantes, a priest, brought vines from Peru to be planted. The grapes grown at this time included Moscatel, Torontel, Mollar, and Pais, also known in California as the Mission grape. In the ealy 17th century, the Spanish monarchy, responding to pressure from Spanish winemakers, forbid wine production in its colonies. By the 18th century, this ban was repealed and Chile resumed producing large quantities of mediocre wines. Most of the wine involved a combination of dry juice and boiled grape must, producing a sweet wine of very low quality by today's standards.

Chile continued producing this style of wine for about 100 years, until it gained independance from Spain in 1818. In 1830, a Frenchman named Claudio Gay started the Quinta Normal, an organization that studied botany, including European grape vines. This started what has been a long standing relationship between France and Chile in winemaking. By the middle of the 19th century, this relationship had advanced considerably, and to this day many french winemakers, such as Château Lafite Rothschid and Margaux have started wineries there.

Towards the end of the 19th century, as Phylloxera devastated the rest of the world's wine producing ability, Chile remained one of the few places in the world unaffacted by the louse. As a result of this, at the beginning of the 20th century, Chile's wine industry was booming. The government of Chile then squashed this growth. They were concerned with the riches being amassed by the wine producers, and the increasing consumption of the Chilean people, so they began to tax wine heavily. By the 1970's, close to half of Chilean vineyards had been uprooted. This course was reversed in 1979, when a Spanish winemaker named Miguel Torres brought modern winemaking techniques to Chile for the first time. Up until this point, Chile was way behind other countries in terms of modernization, but by the 1980's, Chile had begun to catch up. Today, Chile has new wine laws and and appellation controls designed to help it compete favorably on the international stage.

Chile currently has about 132 hectares of vineyards that make 4,500 hectaliters of wine per year. Because most of Chile is free from Phylloxera, many winemakers are using original vitis vinifera vines that have been around for 100 years or more. The average Chilean consumes 14 gallons of wine a year, which dwarfs the United States paltry 2 gallons per capita, and beats out England's 12 gallons per year. This combined with a great deal of foreign investement, has made Chile an ideal place to grow and export wine. Chile is just beginning to capitalize on these ideal circumstances.

Chile's most common grape varieties include Sauvignon Blanc, Chardonnay, Moscatel, Cabernet Sauvignon, Pais, and Merlot. The climate varies considerably throughout the country, due to the altitude of the Andes mountain range, and the coastal microclimates. The Humboldt current is a major influence on wine production, bringing cooling artic winds to the vineyard areas. The top quality wines in Chile come from areas with deep limestone soils.