Source : Webster's Revised Unabridged Dictionary (1913)

Cotswold \Cots"wold`\ (k?ts"w?ld`), n. [Cot a cottage or hut +
   wold an open country.]
   An open country abounding in sheepcotes, as in the Cotswold
   hills, in Gloucestershire, England.

   {Cotswold sheep}, a long-wooled breed of sheep, formerly
      common in the counties of Gloucester, Hereford, and
      Worcester, Eng.; -- so called from the Cotswold Hills. The
      breed is now chiefly amalgamated with others.

Source : WordNet®

Cotswold
     n : sheep with long wool originating in the Cotswolds