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If two begin competing. over time, evolution results in the resources exploited by each species changing such that it reduces competition, the term for which is niche differentiation or niche partitioning.
The term "niche differentiation" refers to how competing species utilize their environments in unique ways to survive. A good illustration of niche differentiation may be seen in the Caribbean Islands, Central America, and South America, where a variety of anole lizard species can be found coexisting in the same habitat despite occupying essentially the same basic niche.
Natural selection, or evolution, is a process that is observed in living things and is thought to be responsible for the progressive alterations in a species' features through successive generations.
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