Seeking to be the first sisters to both win majors, Jutanugarn's 9-under total was four shots clear of three players in the clubhouse, including Jennifer Song of the United States, whose 65 was best among the morning starters.
Lydia Ko is within touching distance of adding another major golf title to her resume.
The Championship was reduced to 54 holes after Thursday's play was wiped out by severe storms and the last day was a real ding dong affair.
Moriya Jutanugarn of Thailand leads at nine-under after carding a three-under-par 68.
Jutanugarn (72) and Ko (69) finished in a tie for third with Katherine Kirk of Australia, whose 70 included bogeys at the 16th and 17th as the chilling rain fell.
Neither of the two players ahead of her has yet won on the LPGA Tour.
Last year, Nordqvist lost a playoff for the U.S. Women's Open after a rules violation on the second extra hole - for touching sand with her club in a fairway bunker - was relayed to her on the next hole.
She came into the week confident after turning her form around this year, capturing her first LPGA title since 2010 at the Thornberry Classic in Wisconsin in early July.
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Mauricio Pellegrino will be delighted by his team's victory as Southampton put in a season's best performance at Selhurst Park. Hodgson said he was looking forward to the new challenge.
It capped a bittersweet tournament for the former world No.1, who has endured a testing year but played with aplomb at a tournament she won two years ago. She could well have joined the playoff if not for the double bogey at the par-four 10th.
In this Associated Press photo, Park Sung-hyun of South Korea watches her shot at the third hole during the final round of the Evian Championship on the LPGA Tour in Evian-les-Bains, France, on September 17, 2017.
In her final round as a professional before retiring, two-time Evian victor Ai Miyazato shot 73 to finish 1 over.
Inevitably a question about the comparisons between her and Ariya came up during her post round press conference.
"I chipped in for birdie at the first hole, so that was a good start", she said. Well, it's just like I try to keep working on my game, keep improve whatever I can.
Park said: "I didn't play well today, so I have a little gap from the top players".
In the end the LPGA history was made by Nordqvist - who has suffered with glandular fever for three months of the summer - as she became the first European female golfer to win a major since 2009.
"That was a huge confidence boost, especially after struggling for a couple years and questioning whether I'd be playing much longer", said Kirk.