Maotai is produced in the city of the same name, located in the province of Guizhou. The production is local, as is the case with champagne. Kweichow is a huge player in this market, partly because the company is partly owned by the state. The distillery is located in an area with excellent climatic conditions: mild winters alternate with warm summers. Furthermore, it is located at the upper end of the 20 kilometre long Chishui River and this is also where the water that is used for the production of the drink comes from. This water is known for its purity and is rich in micronutrients, which translates into the characteristic taste of the drink.