Blenheim is Marlborough's most populous town (29,300 inhabitants) and its wine-producing heartland. Sheep farming began in the 1840s, and the town was established in 1852, when James Sinclair, a Scotsman, decided to open his first store there. The settlement was first known as The Beaver because of the numerous floods in the surrounding rivers. Ten years later, the discovery of gold in the Wakamarina River led to rapid development. Hot, dry summers and mild winters encouraged the emergence of new agricultural products, including fruit and, later, wine. Today, Blenheim boasts the highest number of hours of sunshine in the country (a title disputed by Whakatane, in the Bay of Plenty, and even by neighboring Nelson). Since the first vines were planted in the 1970s, Marlborough has become New Zealand's most important wine-growing region. The main grape varieties used are Sauvignon Blanc and Chardonnay, and some cuvées are comparable to the best French wines.Its māori name, "Te Waiharakeke", is a contraction of "wai", meaning water, and "harakeke", the māori name for the endemic plant known as "flax", which has nothing in common with flax other than the quality of its fibers. "Te Waiharakeke" therefore means "flax waters" and, like the nickname "The Beaver", refers to the river's tendency to get out of its bed.

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