(PD) - Washington state may be overshadowed by California’s wine industry, but it is gaining prominence and will continue to do so thanks to cheap land, fewer regulations and growing recognition of the quality of the Evergreen State’s varietals.

That was the message Tuesday from Ted Baseler, president and chief executive of Ste. Michelle Wine Estates of Woodinville, Wash., which has grown to be the nation’s seventh-largest wine company through the strength of its home market, an astute import business focused on a few specialized brands and through strategic acquisitions, such as its 2007 purchase of Stag’s Leap Wine Cellars in Napa Valley.

The Pacific Northwest’s growing stake in the U.S. wine industry has been highlighted in recent years by E&J Gallo’s move into the Washington market and Jackson Family Wines’ acquisitions in Oregon, notably for pinot noir grapes from the Willamette Valley.

“It’s really exciting to see highly credible Californian wineries getting engaged in Washington and Oregon,” Baseler told attendees at the Wine Industry Financial Symposium on Tuesday at the Napa Valley Marriott. “It’s a fairly recent phenomenon. I call it the overnight success that just took 30 years.”

The reasons for the Northwest rush are mainly economic, including the higher cost of California land. Vineyard acres in Napa County at the top end are hitting almost $300,000 per acre; the top price in Sonoma County is around $150,000, according to the Correia Co.

In contrast, Baseler, one of more than 40 speakers at the two-day conference, noted that vineyards sell for $50,000 per acre in Washington’s Red Mountain region in the south-central part of the state that is noted for its cabernet sauvignon, malbec and merlot.

Water is more plentiful with the Columbia River, the country’s second-largest watershed, and the industry has been aided by local irrigation projects, Baseler said. In the Golden State, counties are dealing with new state rules for pumping groundwater in the midst of a drought. In addition, North Coast residents have expressed growing frustration with the increased traffic and events tied to the industry, which drives tourism in the area. Activists and residents in Napa and Sonoma have urged elected officials to enact greater restraints.

Those issues have come to a forefront for the industry at the same time Washington has increasingly received more plaudits for its wine. In 2009, Wine Spectator named Ste. Michelle’s Columbia Crest 2005 Reserve Cabernet Sauvignon the top wine in the world.