England's Davies, 39, outdueled Webb down the stretch to win by a shot and claim her third Ladies Masters title. Her best finish in the Women's Australian Open Championship was a third place showing at Yarra Yarra in 2000.
Webb is a two-time winner of the AAMI Women's Australian Open and will be defending the title she won last year in sudden death at Yarra Yarra Golf Club in Melbourne. Her other victory came in 2000
Sophie Gustafson, who won the 2001 AAMI Women's Australian Open and had a fifth place finish last year, will be back to try and regain her title.
Also schedule to play are American's Laura Diaz, Kelly Robbins and Natalie Gulbis and Spain's Paula Marti.