1. Using a model (PROTECH-C) that simulates the simultaneous daily growth of eight phytoplankton species, the following hypotheses were tested: (i) for each given set of simulated conditions, the species with the most appropriate trait, as predicted by a functional group classification, should dominate the community; (ii) with removal of this dominant species, the next best-adapted species should dominate and should be from the same, or a close, functional group where available; (iii) a reduction in the inoculum size of the initially dominant species will not prevent its eventual dominance of the community. 2. For clearer insight into the mechanisms underlying these community processes, a functional group classification based upon species morphology has been used to produce a matrix analogous to Grime's CSR (C, competitor; S, stress tolerator; R, ruderal) paradigm. The effects upon this phytoplankton community of temperature, grazing, limiting light and nutrients over a simulated year were recorded. 3. The results supported all three hypotheses. It was found that, for a given selective constraint, functional traits provided excellent predictors of the dominant types. Also, under conditions of resource competition, the number of functional groups represented decreased. Competition was greatest within functional groups where niche overlap was high, but one species was always clearly the strongest competitor, i.e. its superiority over its nearest functional competitor was regularly expressed even when the difference in inoculum size was great (1000-fold). These conclusions emphasized the power that trait selection can have in the shaping of communities.