Emergency services were called at 11.15am after receiving reports two people had gone missing in the ocean while walking in the shallows.
State Emergency Service volunteers and police launched a search for the pair.
Police said this afternoon a 67-year-old woman and a 65-year-old woman were pulled from the water but could not be revived.
The women, who were both residents of Streaky Bay, have not been publicly identified.
A report will be prepared for the coroner.
