Environmental fluctuations can in theory allow the coexistence of ecologically similar species by 'timesharing' a niche, as envisioned by Hutchinson. The evolution of this situation is studied in a competition model, using as an example the evolution of seed germination strategies. Coexistence occurs via the evolution of 'low-risk' and 'high-risk' strategies for dealing with the variability by different species. Coexistence is promoted by intermediate levels of variability or disturbance, and by a trade-off between seed yield and seed survivorship. These results may be applicable also to other low vs. high risk life history options in unpredictably varying environments, such as: stress resistance vs. potentially rapid growth, high adult survivorship vs. high reproductive output. The model's predictions differ from those obtained without consideration of life history evolution in response to environmental variability, and are consistent with some recent studies of plant strategies in intermittently stressed communities.