 Already in the 16th century , Spanish settlers in Chile and Peru began producing aguardiente distilled from fermented grapes . Since at least 1764 , Peruvian aguardiente was called " pisco " after its port of shipping ; the usage of the name " pisco " for aguardiente then spread to Chile . The right to produce and market pisco , still made in Peru and Chile , is the subject of ongoing disputes between the two countries . 
