The Happy Canyon of Santa Barbara is located in Santa Barbara County. It is the smallest AVA in Santa Barbara County when measured by land under vine, covering 37 square miles (23,941 acres) with 492 acres (199 ha) of planted vine. The area comprises canyon terrain, hills, and river and creek basins to the east and south of the San Rafael Mountains, northwest of Lake Cachuma and north of the Santa Ynez River. Elevations within the AVA range from 500 feet (150 m) in the southwest corner to 3,430 feet (1,050 m) in the northeast corner, in the foothills of the San Rafael Range.

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