Jonathan Rea has completed a dominant double victory at Phillip Island to produce a perfect start to the defence of his World Superbike title.
The Kawasaki Racing Team rider measured his race pace to perfection to remain in charge of the leading pack and in a similar bolt to race one over the final two laps he blasted past Davies in the run down to turn one and fended off the Welsh rider's attacks to clinch the race win by 0.025s.
Despite another spirited battle but falling just short, Davies can be content with two second places finishes to give himself a bright start to 2017 in the hunt for the World Superbike title.
The Welsh rider's team-mate Melandri also enjoyed a sharp return to racing by making up for his race one off to finish third for Aruba.it Racing Ducati having led for a large part of the middle chunk of the race before his pace faded late on.
For a second straight race Alex Lowes claimed fourth place for Pata Yamaha to get his year off to a positive start, albeit without the return of any podium trophies, while Barni Ducati's Xavi Fores held on to fifth place from Tom Sykes who struggled to match the race pace of the front trio after being held up by the race two grid reverse.
With the controversial race two grid formation being run for the first time it appeared to have the desired effect with both Davies and Rea picking their way through the pack to climb towards the top but Sykes was unable to make any solid progress over the opening half of the race, eventually settling for sixth place.
Pata Yamaha's new recruit Michael van der Mark finished seventh ahead of Leon Camier and Lorenzo Savadori as his Milwaukee Aprilia team-mate Eugene Laverty rounded out the top ten.
Full race two results from the opening round of the 2017 World Superbike Championship at Phillip Island, Australia.
1. Jonathan Rea GBR Kawasaki Racing ZX-10R 22 laps
2. Chaz Davies GBR Aruba.it Racing Ducati 1199R +0.025s
3. Marco Melandri ITA Aruba.it Racing Ducati 1199R +0.249s
4. Alex Lowes GBR PATA Crescent Yamaha R1 +0.956s
5. Xavi Fores ESP Barni Ducati 1199R +2.320s
6. Tom Sykes GBR Kawasaki Racing ZX-10R +4.781s
7. Michael van der Mark NED PATA Yamaha YZF-R1 +7.307s
8. Leon Camier GBR MV Agusta RC F4 RR +9.756s
9. Lorenzo Savadori ITA Milwaukee Aprilia RSV4 +11.135s
10. Eugene Laverty IRE Milwaukee Aprilia RSV4 +20.123s
11. Alex de Angelis SMR Pedercini Kawasaki ZX-10R +25.799s
12. Josh Brookes AUS ER Motorsports Yamaha YZF-R1 +25.879s
13. Markus Reiterberger GER Althea BMW S1000RR +25.917s
14. Roman Ramos ESP Team Go Eleven Kawasaki ZX-10R +26.292s
15. Stefan Bradl GER Red Bull Honda CBR1000RR SP2 +28.440s
16. Randy Krummenacher SWI Puccetti Kawasaki ZX-10R +33.679s
17. Ondrej Jezek CZE Grillini Kawasaki ZX-10R +1m 14.043s
Did not finish
Nicky Hayden USA Red Bull Honda CBR1000RR SP2
Riccardo Russo ITA Guandalini Yamaha YZF-R1
Ayrton Badovini ITA Grillini Kawasaki ZX-10R
Jordi Torres ESP Althea BMW S1000RR
Ruled out by injury
Leandro Mercado ITA IodaRacing Aprilia RSV4