Talley Farms began in 1948 founded by Oliver Talley. At that time, they started with growing vegetables first in the Arroyo Grande Valley. And in time, came to be recognized for the exceptional quality of the vegetables grown. As winegrowing became a success in the neighbouring Edna Valley, they started growing high-quality wine grapes on the steep hillsides above Talley Farms. In 1986, Talley Vineyards was founded with the vision to produce estate-bottled wines with the same reputation for quality as their vegetables—wines that captured the unique character of their land and exemplified their expertise as farmers.

The Arroyo Grande Valley is a federally approved American Viticultural Area (AVA) in recognition of the valley's distinctive climate and soil characteristics. Oriented predominantly northeast-southwest, this coastal valley is considered one of the most temperate viticultural areas in the world. These ideal conditions result in a long and mild growing season, with bud break typically occurring in mid-February, flowering in early May and harvest in September. Still widely planted to vegetables on the valley floor, winegrowing in the valley dates to the 1880s, when Zinfandel was planted in the warmer, eastern part of the valley. The modern era began in the 1980s with plantings of Chardonnay and Pinot Noir on the hillsides of the western end of the valley, closer to the ocean. There are just over 800 acres of wine grapes in the Arroyo Grande Valley, with Pinot Noir and Chardonnay predominant.