In 1999, Joe Phelps (known for the Napa Valley meritage, Insignia), purchased a former dairy farm of 89 acres in Freestone located in the true Sonoma Coast ostensibly to grow Chardonnay. It turned out the site was better suited to Pinot Noir. Years later, Freestone Vineyard was planted to 34 acres of Pinot Noir and 21.7 acres of Chardonnay at the end of Freestone Flat Road. The Freestone Vineyard was then joined by two other nearby vineyards following the acquisition of additional property: Quarter Moon Vineyard (41 acres of Pinot Noir) and Ferguson Vineyard (6 acres of Pinot Noir.)

The project is a joint partnership between viticulturists Greg Cannon and Phillipe Pessereau, Bill Phelps, Tom Shelton (CEO of Phelps), and winemaker Craig Williams (formerly Williams Selyem). A 40,000 square foot winery in the center of Freestone Flat Vineyard was built. It is built into the hillside and employs gravity-flow via its three level construction. No tastings or tours will be done at the winery due to environmental concerns, but the Freestone Vineyards Guest Center is now open Friday through Monday, from 11-6, at the corner of Boehmian Highway and Highway 12 (Bodega Highway) in the old Pastorale Building.

The entire project has been fraught with difficulties since the beginning. They principals have spent at least $25 million dollars to date, including a reported $1 million to obtain the necessary permits and pacify local residents. Gophers have been a major challenge and were eating 40% of the new plantings until seven gopher-trappers were hired to eradicate the gophers. Ripening grapes properly in this chilly climate has been a challenge and yields can be ridiculously low due to poor berry set in the cool days of the spring growing season. It is not unusual to have 45 degree temperature swings in a single day here!

The associate winemaker is Theresia Heredia and the consulting winemaker is noted Burgundian Pascal Marchand.

The first vintage of Pinot Noir produced from Sonoma Coast grapes was released as the 2004 fogdog Pinot Noir. Fog dog is a bright or clear spot that appears in a breaking fog. This wine contained grapes from three estate-grown vineyards: 70% Freestone, 26% Quarter Moon, and 4% Ferguson. In 2005, 600 cases of Freestone Vineyard /sonoma Coast Pinot Noir ($7$) were produced and in 2006, 2,700 cases ($74). The value label, fogdog, was retained for both Pinot Noir and Chardonnay. The high-end Chardonnay is Ovation and there is a fogdog Rosé. The wines are sold through a mailing list.