We study a stochastic two-species interacting population system, in which species interact within each compartment according to some nonlinear dynamics. In addition we have another mechanism (e.g. migration between compartments) which yield unbiased perturbative changes to species amounts. If each compartment has a large but bounded capacity, then certain combination of these two mechanisms can lead to stochastically induced bistability. In fact, depending on the relative rates between the mechanisms, there are two ways in which bistability can occur, with distinct signatures in terms of spatial correlations.