It's a word of Basque origin. It is also possible to use chacoli or txacolí. You mean white wine. It can thus be called the place where it is produced or the place where the white wine is consumed.
TXakolin CHACO, in Basque. See TXAKOLI
CHACOLI:VINO AROMATIC ACID. MADE LITTLE SWEET WITH A VARIETY OF GRAPES.