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Watervale is a town on the Horrocks Highway in the Clare Valley, South Australia, approximately 9 kilometres north of Auburn and 15 kilometres south of Clare. It is surrounded by a number of small wineries and several B&Bs. The Riesling Trail runs past the town to the west, between the Highway and the Skilly Hills. The town has a number of 19th-century heritage buildings, including the former Stanley Grammar School, which now provides private bed and breakfast accommodation.
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