The Jerez wine region is an area of open, rolling land with a unique feature, its "albariza" (from the Latin alba, or white), a chalky white soil. This albariza is the best type of soil in which to grow grapes for the production of Sherry Wine and it yields the highest quality grapes.

The albariza is a white organic loam formed by sediment from the inland sea that covered the region in the Oligocene period. It is rich in calcium carbonate, clay and silica and is highly retentive of moisture, locking in each Winter's rainfall in order to nourish the vines during the dry months.

There are also other soil types in the region, though in a lower percentage, which are used to produce Sherry Wine. These are known as "barros", or clays, and "arenas", or sands.

The region's winegrowers have traditionally divided the production area into "pagos". Each small area of vines with a homogenous mesoclimate and land, limited by topographical features earns the name of "pago". Some of the most famous pagos are those of Carrascal, Macharnudo, Añina and Balbaina.