Davies shot a six-under par 67 for an aggregate total of 272 to claim a four-stroke victory over the 19-year-old, Australian Karrie Webb.
In doing so, she become the first professional golfer - male or female - to win on five different tours during a calender year after triumphing three times in the United States, twice in Europe, once in Japan and once in Thailand on the Asian Tour.
But she failed to beat the women's world best score for a 72-hole tournament - the 20 under par record that she shares with Americans Nancy Lopez and Beth Daniel and Scotland's Dale Reid - after missing a four-foot birdie putt on the 18th.
"It's only numbers," Davies said. "Someone will come along one day and beat it."
Davies set a course record of 64 over the par-73 Royal Pines course in the opening round and dominated the tournament.
Webb, who carded a 69, briefly led midway through the final round after four birdies on the outward nine, but Davies regained the lead with a birdie at the 14th and Webb bogeyed it after failing with a seven-foot putt for par.
"Karrie was tough on the front nine," Davies admitted. "I knew I had to make a few birdies or she was going to win."
Davies, the leading money winner on this year's US LPGA Tour, won the tournament for the second successive year "To win anywhere is good, but to win on the five tours is great," she said. "I feel so relaxed down here in Australia that I can't help but e n joy myself. The year exceeded my expectations by miles. It's been the sort of year you don't believe can happen."
Webb, who was refused an invitation to next year's Asian Tour, was left in awe of both Davies' power and her finishing burst.
"She just put her foot down and went away," Webb said. "Her drives were unbelievable. There is no way you can get anywhere near her."
Jane Crafter of Australia had a one-under-par 72 to finish third on 281 and Sweden's Annika Sorenstam also shot a 72 to finish fourth on 282.Reuse content