South Korean Haeran Ryu capped a front-nine run with a chip-in birdie on the ninth hole, then held on in tricky wind conditions for a share of the lead with Japan's Mao Saigo entering Sunday's final round.
On a gusty, sunny day at The Club at Carlton Woods in the first women's major of the year, Ryu parred the final nine holes for a four-under 68. Saigo followed with 69 to match Ryu at nine under.
Ryu opened with a 65 on Thursday for share of the lead with Yan Liu, then shot a 74 to fall two strokes back. On Saturday, after a bogey on the third hole, she birdied No.4 and ran off four straight from the sixth hole.
The 24-year-old has two LPGA Tour victories but no majors.
The Australian challenge stalled somewhat with Lee only managing an even-par 72 to stay at four under and slip five shots behind the leaders.
Lee's round included a dreaded double-bogey six on the fifth hole but the dual major winner at least clawed back the damage with two back-nine birdies to give herself a fighting chance on Sunday (Monday AEST).
The 28-year-old West Australian is capable of going low to snatch the trophy on Sunday.
Lee famously came from seven strokes back to claim her maiden major at the 2021 Evian Championship.
She shares the record for the trimming the biggest final-round deficit at a major with fellow Australian Karrie Webb, who won the 2006 Chevron Championship from the same margin starting on Sunday.
But with 14 players ahead of her on the leaderboard, the task this time seems even more formidable.
Saigo is winless on the LPGA Tour. The 23-year-old was the tour's rookie of the year last season. She parred the last five holes after chipping in for birdie on the par-5 13th to get to nine under.
Lindy Duncan is a stroke back after a 70. Fellow American Sarah Schmelzel had a 71 to join Liu (72) at seven under.
Liu, the Chinese player who took a one-shot edge into the weekend, dropped out of a three-way tie for the lead with a double bogey on the par-3 17th.
Playing into the wind on the 144-yard hole, she hit short into a bunker, then left her second in an awkward position in thick rough above the bunker. She chipped 20 feet past and two-putted.
Lexi Thompson tops the group at six under after a 70. The 30-year-old Florida player retired from fulltime golf at the end of last season. She won the 2014 event - then the Kraft Nabisco Championship - at Mission Hills in Rancho Mirage, California.
World No.1 Nelly Korda is tied for 31st at even par in her title defence. The American had consecutive double bogeys on her second nine in a 71. Winless this season, she won last year for the last of her record-tying five straight victories.
Gabriela Ruffels carded the low round by an Australian, a two-under 70 to surge 33 spots up the leaderboard to join Korda at even par,
Starting from the 10th tee, Ruffels compiled one of the few bogey-free rounds, birdies at 14 and eight along with 16 pars.
Steph Kyriacou and Cassie Porter are tied for 45th at two over after notching matching 73s. while Grace Kim's quadruple-bogey at the par-3 third did the majority of the damage in her round of 77.
Kim is five over and tied forÂ
With AAP
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