Penobscot Farm Cottage is a rustic 1860s one-bedroom cottage, offered as part of the Watervale Hotel's accommodation packages. The hotel operates a highly awarded restaurant in the Clare Valley, Penobscot Restaurant, which emphasises a farm-to-plate philosophy. The restaurant offers a 10-course degustation menu for $150 per head at the Chef's Table, with sittings at noon and 6pm daily.

The seasonal menu is driven by produce from the hotel's own organic, biodynamic Penobscot Farm, which is also the source for much of the restaurant's produce. Guests can book a farm tour at 4pm or a comprehensive Wine Masterclass at 11am daily. Accommodation packages start from $850 per couple for one night at the farm, and the hotel also offers a separate six-bedroom guesthouse.