Interactions between environmental conditions and environment-affecting species have not been investigated extensively. In this study, the population dynamics of species yielding regulative feedback between temperature (a representative of environmental condition) and species with a temperature-altering trait was examined. We considered a simple closed model that described the population of two species (at least one of them had a temperature-altering trait) competing for one resource. The long-term outcomes of the competition and changes of temperature were explored against increasing background temperature. As a result of simulations, the regulation of temperature was accompanied by the coexistence of two species, which was contrary to the 'Gause's exclusion principle'. The steady-state analysis showed that (i) the temperature-altering trait allowed species to coexist and (ii) the coexistence of species with the trait could introduce the regulation of temperature. A 'trade-off' in their ability to utilize a resource plays a key role in this coexistence and homeostasis of temperature. This may imply that actual environmental conditions can be automatically stabilized by resource competition among species in natural ecosystems. (c) 2007 Elsevier Ltd. All rights reserved.