South Africans Jacques Kallis and Ashwell Prince blunted Australia's bowlers with a record century stand after the home team's early success, supporting skipper Graeme Smith's decision to bat in the final cricket Test on Monday.
After losing the wickets of AB de Villiers (2), Herschelle Gibbs (27) and Smith (39) in the first session, the Proteas, trailing 1-0 in the series, ground out three runs an over to build a solid first innings foundation.
The entire morning session at the Sydney Cricket Ground was lost to rain after a New Year's Day scorcher before Smith opted to bat first on a greenish pitch under cloudy skies conducive to swing bowling.
At stumps on a slow-moving opening day, South Africa were 230 for three, with Kallis on 80 and in sight of his 23rd Test century and Prince not out 62.
Kallis, who was Test cricket's top-ranked batsman before being supplanted this week by Ricky Ponting, chiselled out a risk-free innings off 181 balls in 226 minutes to work the Proteas into a strong position.
Prince, who was out to a poor umpiring decision in the second innings of the Melbourne Test, batted for 128 balls over 191 minutes.
The pair broke their country's fourth-wicket partnership record at the SCG with an unbeaten stand of 144, surpassing the previous 97 by Hansie Cronje and Gibbs in 1997-98.
"We have tended to dominate the last session of the first day of both previous Test matches and it's important that we follow this up now with a good first session tomorrow," South African coach Mickey Arthur said.
"I think if you can string back-to-back sessions together it puts you in a dominant position and you can exert a bit of pressure on the opposition.
"We're aware that the new ball's due early tomorrow, which is a crucial factor, and if we can get through that then hopefully we can set up something big.
"We have planned for 350, that's where we were looking and we think that we can defend under 300 in the fourth innings of this game."
Ponting stuck to his seamers under heavy skies, even preferring part-time medium-pacer Mike Hussey to 178-wicket leg-spinner Stuart MacGill, until MacGill came into the attack after 51 overs. He finished the day 0-53 off 12 overs.
Test cricket's leading wicket-taker Shane Warne bowled just seven overs for 24 runs on an unfavourable first day without any sun to help him.
"It was a seaming wicket, plenty of moisture there. We take the game plan in of playing two spinners, obviously hoping to bat first and have them bowling on day five," Australian vice-captain Adam Gilchrist said.
"Sometimes you're going to get caught out and have to bowl on a moist wicket like today with only two fast men and Andrew Symonds.
"The wicket didn't really grip for the spinners, if anything it just skidded across the top. It didn't offer a great deal."
Australia's new-ball attack of Lee and Glenn McGrath troubled the South African top-order with plenty of swing and sideways movement in the delayed first session.
AB de Villiers was dropped by Ponting at second slip off McGrath on two before he was caught behind off Lee for no addition to his score in the sixth over.
Gibbs, who scored 94 in the first innings of the second Test, was bowled by McGrath in the 11th over of a 12-over first spell.
Smith yet again failed to carry on after getting a start and fell leg before wicket to Lee for 39 in 125 minutes to leave his team on 86 for three. It was Lee's 190th Test wicket.
In the series, Smith has had scores of 34, 30, 22, 25 and 39.
Australia lead the series 1-0 after their 184-run victory in the second Melbourne Test last week.
The South Africans gave a Test debut to off-spinner Johan Botha, who was preferred to left-arm spinner Nicky Boje. Seamer Charl Langeveldt came in for strike bowler Makhaya Ntini, who has returned home with a knee injury from the Melbourne Test.
Australian captain Ponting was presented with an award to mark becoming only the ninth Australian to play 100 Tests.

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South Africa 1st innings
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G. Smith lbw b Lee                  39
A.B. de Villiers c Gilchrist b Lee   2
H. Gibbs b McGrath                  27
J. Kallis not out                   80
A. Prince not out                   62
Extras: (B-8, LB-3, NB-9)           20
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Total: (3 wkts, 74 overs)          230
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Fall of wickets: 1-16, 2-69, 3-86
Bowling: McGrath 20-10-39-1, Lee 17-3-42-2 (6nb), Symonds 16-3-49-0 (1nb), Warne 7-1-24-0, Hussey 2-0-12-0 (2nb), MacGill 12-1-53-0
Toss: South Africa
Umpires: Billy Bowden (NZL), Aleem Dar (PAK)
Match referee: Chris Broad (ENG).