Eight teams will compete in the Women's Big Bash League (WBBL) to be launched in the 2015-16 season.
The teams will be aligned with the existing eight men's teams competing in the KFC T20 Big Bash League (BBL).
Cricket Australia CEO James Sutherland said on Thursday those decisions had now been endorsed by the CA Board.
Sutherland said the new competition was a key part of its goal to make cricket the number one sport for girls and women in Australia.
"We see T20 as the premium format of the women's game and the WBBL is an exciting concept that will increase the promotion and exposure of women's cricket," said Sutherland.
He said it would provide an inspiring visible pathway for the next generation of players.
"Our existing female domestic competitions are arguably the strongest in the world, with the continued success of the top-ranked national women's team, the Commonwealth Bank Southern Stars, a testament to that.
The format of the new competition is still being discussed, with consideration being given to the best way to ensure an evenly balanced and high quality competition.
The operational component of the competition will be managed by State Associations, as was the case with the previous WT20 competition.
The format of the Women's National Cricket League (WNCL) is still under consideration.
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