World Rugby said it is investing 6.4 million pounds ($8.85 million) in the first two years of the competition.
Teams will qualify into the WXV courtesy of their finishing positions in their existing annual regional competitions, which must be completed by June each year.
WXV 1 will contain six teams — the top three from the Six Nations competition in Europe and the top three from the cross-regional tournament featuring Australia, Canada, New Zealand and the United States. Each team will play three matches in a standalone tournament in one location that will be determined on a year-by-year basis.
The second tier will consist of the two next best teams in the Six Nations, the fourth-place finisher in the Oceania-Americas competition, and one team from Oceania, Asia and Africa.
In the third tier, there will be two teams from Europe, one from Asia, and the winner of an Africa vs. South America playoff.
There will be promotion and relegation, except for the first cycle of WXV 1.
"For the first time ever," World Rugby vice-chairman Bernard Laporte said, "women's high-performance programs will, in essence, be able to plan from Rugby World Cup to Rugby World Cup with certainty as a result of the new unified global international 15s calendar."