Kwiatkowski, who began the day two seconds behind Mitchelton-Scott's Daryl Impey after a crash on Tuesday, leads with an overall time of nine hours, 28 minutes and 21 seconds. He was three seconds ahead of Italian teammate Gianni Moscon.
The 181-kilometre fourth stage on Thursday will see riders head into the mountains between Chazey-sur-Ain and Lans-en-Vercors.
The Dauphine is the main warm-up race for the July 7-29 Tour de France.
(Reporting by Anirban Paul in Bengaluru; editing by Andrew Roche)
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