One of the 31 states of Mexico, the small western state of Jalisco on the Pacific Ocean is home to the country’s famed t… equila, a hard liquor derived from the blue agave plant, which is native to the area. The town of Santiago de Tequila is one of 124 municipalities within Jalisco. In 1978, tequila became the first Mexican product to receive its Appellation of Origin. Thus, to be authentic tequila, this iconic spirit must be produced only inside Jalisco (according to the strictest standards fo