 Much of the dryland areas of the Riverina contain large sheep stations , producing medium class wool . The Peppin Merino sheep was first bred in the area around Wanganella . As many as 70 percent of today ’ s Australian Merinos are said to be directly descended from the Peppin @-@ developed sheep . The Riverina is home to many Merino studs and the saltbush plains are regarded as one of Australia 's best wool growing regions . 
