For a wine to bear a regional name, it must be made within the closely defined region in question. For instance, the phrase 'Australian Burgundy' is illegal in France, because Burgundy is not in Australia. Champagne MUST be made in Champagne, from grapes grown in Champagne, by the Méthode Champenoise. Every wine area has its boundaries and rules, covering the geographical area, the manufacturing methods and the variety of grape used.
Less well known is the fact that this rule does not only apply to wine. Many locl cheeses have their appelation, too; generally, anything with a regional name must come from its region. Where I used to live in Normandy, France, our village of Créances was fiercely proud of its AOC carrots.