Karrie Webb blew a chance of winning the Australian Open as some woeful putting saw her lose out to Yani Tseng.

The Australian's overnight lead evaporated as Tseng fired a blistering final round of 66 to win by three shots at Commonwealth Golf Club.

Defending champion Laura Davies finished second after closing with a 71.

Taiwan's Tseng, 21, birdied five of her final nine holes to hold off the challenge from Davies.

"Last night I told my friends I was going to play really good today, I got a good feel on the greens," she said.

"This is a really tough course and you just need to be patient. If you just lose a little focus, it is really bad. I tried to be focused and patient.

"For the last three holes my whole body was shaking. When I stepped up to putt I felt my heart going really fast. I told myself to be relaxed. I told my caddie to be relaxed too."

World number eight Webb carded a closing 74 to finish third.

"I got off to a really great start," Webb said. "I was feeling pretty good out there until I played a couple of scrappy holes on six and seven and really lost a lot of momentum there.

"I just did not hit it as good after that, for some reason. I did not trust myself as much as I would have liked.

"I did not feel as comfortable with the putter in my hand today. There was a bit more noise in my head than there has been."