Beatrice Hess, 38, went one better than Paton as she won her seventh gold, helping France to the women's mixed disability medley relay title in a record 3.10.37s, 17.
Paton used to be bullied at school because of her mild intellectual disability. But the bubbly 17-year-old says she used the taunts fuel her determination to succeed in the Paralympic pool.
After surpassing Priya Cooper as the Australian swimmer to win most gold at a single Paralympics, she said: "I don't think they'll be teasing me anymore.
Paton beat Britain's Emma Mounkley to win the 50m freestyle - an event she had never before won in international competition - in a personal best 29.13secs.
Her efforts, which have included eight world records, also helped Australia consolidate its lead at the top of the medals table over Britain, Spain and the United States.
Battling
After qualifying second 0.1s behind Mounkley in the heats, Paton knew she had a fight on her hands but, her battling spirit pulled her home.
"We're really good friend's and we like each other," Paton said of her toughest challenger. "But when we're in the pool we are enemies."
Beatrice Hess, 38, went one better than Paton as she won her seventh gold, helping France to the women's mixed disability medley relay title in a record 3.10.37s, 17.
World records tumbled at every turn in the pool, with 15 new marks set in 23 races, including China's Xiaoming Xiong posting 26.36s in the men's 50m freestyle for swimmers with leg weakness.
On the track, cerebral palsy sprinter Tim Sullivan of Australia won his fifth gold in the 4x100m relay.
Australia's men gave the host nation a spectacular start to the day, taking five golds in the early session.
Wheelchair sprinter John Lindsay, the reigning champion, topped off a near-perfect morning for the Aussies when he won the T53 100m in 15.59s, ahead of Thailand's Sopa Intasen.
It followed Geoff Trappett taking gold in the T54 100m by upsetting world record holder David Holding of Britain.
Delighted
Tim Matthews delighted the crowd by throwing his shoes, a la Maurice Greene, into the crowd after Australia's amputee 4x100m relay team smashed the world record of 44.64s by more than a second.
In the field, Mexican Adrian Paz threw a new javelin world record of 19.34m to win gold in the wheelchair category ahead of team-mate Maximo Mauro.
Another record fell in the men's wheelchair discus as Iran's Aref Khosravinia added a metre to the former mark of 44.05m.
More than 10,000 people watched Australia's David Hall, a four-time US Open champion, win gold in the men's wheelchair tennis final.
In windy conditions, the world No 1 came from a set down to trounce Stephen Welch of the United States 6-7 (3-7) 6-4 6-2. It was Australia's first ever tennis gold.
"There were a few tears there," said Hall. "I've been thinking about this ever since Sydney was awarded the Games."
In the women's doubles, Dutch pair Esther Vergeer and Maaike Smit overpowered Australia to give the Netherlands its third tennis gold.
Praise
The table tennis competition ended with two golds for Korea and lavish praise for the Sydney organisers.
International Table Tennis Committee president Christian Lillieroos said: "It is the best Paralympic table tennis competition in all aspects. It is the model to follow."
Britain continued its equestrian dominance with Lee Pearson riding to gold in the individual freestyle after his success in the dressage.
Jo Jackson took the honours in the women's individual dressage to give the British five of the nine equestrian gold at stake here.
Powerlifting gold went to Iran and the United States while Iran triumphed overcame Bosnia in the sitting volleyball final.