Pioneering efforts to predict shifts in species distribution under climate change used simple models based on the correlation between contemporary environmental factors and distributions. These models make predictions at coarse spatial scales and assume the constancy of present correlations between environment and distribution. Adaptive management of climate change impacts requires models that can make more robust predictions at finer spatio-temporal scales by accounting for processes that actually affect species distribution on heterogeneous landscapes. Mechanistic models of the distribution of both species and vegetation types have begun to emerge to meet these needs. We review these developments and highlight how recent advances in our understanding of relationships among the niche concept, species diversity and community assembly point the way towards more effective models for the impacts of global change on species distribution and community diversity.