Different components of biodiversity may vary differently since species diversity was considered to be determined by resource availability but functional diversity was related to partitioning of niche space. Moreover, the harsh or benign conditions may result in different niche space partitioning by the coexisting species. For example, in harsh environments niche differentiation may be stronger resulting in higher functional diversity. In this study, we investigate species diversity and functional diversity along a south-to north-facing slope gradient with different resource availability in a sub-alpine meadow. Our results indicate that the patterns of species diversity and functional diversity are not consistent along this gradient. Both species richness and Shannon index of diversity increased, but functional diversity slightly decreased or changed a little from south-to north-facing slope. Moreover, these two components formed a quadratic relationship. Soil water content (SWC) was the limiting resource along this gradient. On one hand, it determined the species diversity; on the other hand, it also influenced functional diversity via affecting niche differentiation and species trait pool. In conclusion, functional diversity was determined by both species richness and niche differentiation with the influence of soil water content.