Spatial heterogeneity in organism and resource distributions can generate t
emporal heterogeneity in resource access for simple organisms like phytopla
nkton. The role of temporal heterogeneity as a structuring force for simple
communities is investigated via models of phytoplankton with contrasting l
ife histories competing for a single fluctuating resource. A stochastic mod
el in which environmental and demographic stochasticity are treated separat
ely is compared with a model with deterministic resource variation to asses
s the importance of stochasticity. When compared with the deterministic mod
el, the stochastic model allows for coexistence over a wider range of param
eter values (or life-history types). The model suggests that demographic st
ochasticity alone is far more important in increasing the possibility of co
existence than environmental stochasticity alone. However, the combined eff
ects of both types of stochasticity produce the largest likelihood of coexi
stence. Finally, the influence of relative nutrient levels and nutrient pul
se frequency on these results is addressed. We relate our findings to varia
ble environment theory with evidence for both relative nonlinearity and the
storage effect acting in this model. We show for the first time that tempo
ral dynamics generated by demographic stochasticity may operate like the st
orage effect at particular spatial scales.