Hee-Won Han and Dorothy Delasin finished in a tie for third at even-par 72. Catriona Matthew was one shot further back at 1-over-par 73.
Kane, who was the runner-up to Se Ri Pak at this event in 2001, stumbled out of the gate with a bogey at the opening hole after her tee shot found a fairway bunker.
The Canadian recovered at the par-5 fourth and knocked her second shot behind the green. She chipped to two feet and converted the birdie try to go back to even-par.
'It was one of those days where you'd just hit a shot and try to control the ball flight as much as you can,' said the 38-year-old. 'You just have to try to stay steady over the putts and hit everything solid.'
Kane kept plugging along at the par-4 seventh and dropped her second shot within a couple of feet for another birdie.
She held on amid the windy conditions at Magnolia Grove and sent her tee shot to the back of the green at the par-3 14th. Kane watched as the ball spun back to stop within two feet of the cup for her third birdie of the day.
'I'm not afraid of the wind,' said Kane. 'I enjoy the wind because it's a challenge. It's just one of those things where you have to concentrate on hitting solid shots, but it's tough for everybody. You just have to put your head down, play hard and see what happens.'
Kane, who was eligible for this elite tournament because of her win at the LPGA Takefuji Classic in 2001, is seeking her first win since that event.
'I've been trying to get some things together, but I seem to have some lulls in the middle of my rounds,' said Kane. 'I'm feeling good about things though. My game is good and is continuing to get better. It all just has to come together at once.'
Webb had a roller coaster of a front nine with three bogeys and three birdies. The Australian got off to a good start on the inward half with a birdie at the 11th after her approach landed eight feet from the cup.
She stumbled with a bogey at the 14th but reached the green in two at the par-5 16th en route to a birdie to finish one shot off the lead.
'We've never played this course with a lot of wind,' said Webb. 'The way this course is designed, when it's windy it's hard to get the ball to the right part of the greens.'
Wendy Ward finished alone in sixth place at 2-over-par 74.
U.S. Women's Open champion Hilary Lunke followed at 3-over-par 75. She was joined by Grace Park, Beth Daniel, Rosie Jones, Laura Diaz, Gloria Park, Laura Davies and Candie Kung in a tie for seventh.
Pak, who is trying to win this event for the third straight year, struggled with an opening-round 76 to finish six shots off the pace along with Mi Hyun Kim, Juli Inkster, Meg Mallon, Janice Moodie and Rachel Teske.