Theoretical models imply that spatial scale derives its greatest impor
tance through interactions between density-dependent processes and spa
tial variation in population densities and environmental variables. Su
ch interactions cause population dynamics on large spatial scales to d
iffer in important ways from predictions based on measurements of popu
lation dynamics at smaller scales, a phenomenon called the scale trans
ition. These differences can account for large-scale population stabil
ity and species coexistence. The interactions between density dependen
ce and spatial variation that lead to the scale transition can be unde
rstood by the process of non-linear averaging, which shows how varianc
e originating on various spatial scales contributes to large-scale pop
ulation dynamics. Variance originating below the scale of density depe
ndence contributes less to the scale transition as the spatial scale o
f the variation declines, while variation originating on or above the
scale of density dependence contributes independently of the spatial s
cale of the variation.