That year the Margaret River Progress Association requested that a townsite be declared at "the Upper Margaret Bridge", because "the district is likely to be dotted with public buildings several miles apart in the near future if a townsite is not made available shortly".

Most rain falls between May and August, when around two days in three record measurable rainfall and around one in ten over 10 millimetres (0.39 in).

The dry summers, coupled with strong winds, creates an environment where there is always a high risk of bush fires.

Margaret River is the foremost Geographical Indication wine region in the South West Australia Zone, with nearly 55 square kilometres (21 sq mi) under vine and over 138 wineries as at 2008.

Stretching some 100 kilometres (60 mi) from north to south and about 27 kilometres (17 mi) wide in parts, the region is bounded to the east by the Leeuwin-Naturaliste Ridge, between Cape Naturaliste and Cape Leeuwin, and to the west by the Indian Ocean.

A Mediterranean-style climate, lacking extreme summer and winter temperatures, provides ideal growing conditions.

[11][12] Humidity levels are ideal during the growing period and the combination of climate, soil and viticulture practices leads to consistently high quality fruit of intense flavour.

Consequently, annual vintage results continue to exceed expectations and reinforce Margaret River's reputation as one of the premium wine-producing regions of the world.

The WSL Margaret River Pro is held annually in May attracting professional surfers from across the globe.

The CinefestOZ film festival stages several events across the region in late August each year.