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The land now occupied by the Woody Nook Wines estate was formerly home to a sawmill and sleeper cutters. In 1978 Jeff and Wynn Gallagher, wishing to make a change from their floor-covering business in Perth, purchased the property with a vineyard in mind and began the arduous task of clearing and preparing the land. The first cuttings were planted in 1982 and the first crush took place in 1987, the first winery building having been built the year before. The Gallaghers constructed this and their new home from timber and rammed mud brick, both materials being available on the property. There are still about sixty acres of jarrah and marri forest forming a magnificent backdrop to the winery and restaurant.
Peter and Jane Bailey became the proud new owners in May 2000 when at the end of 1999 Jeff and Wynn decided to retire to Busselton and put Woody Nook on the market. As part of the deal, Neil Gallagher stayed on as Winemaker/Viticulturist and was offered a shareholding in the business.