Penola is the major town in the Coonawarra The town is also famous as a hugely important location in the life of Mary McKillop, Australia's first saint. Along the road from Penola north to Coonawarra there are a total of 30 wineries. This is the result of an unusual situation where there are beautiful red soils (terra rossa) stretching for 14 km and lying on top of limestone. eclared a State Heritage Area in 1997, Petticoat Lane contains a number of very old single storey cottages and is a charming reminder of what Penola was like in the 1860s. Sharam Cottage which dates from 1850