Complex sentence: The name "water mold" refers to their earlier classification as fungi, which stemmed from their preference for conditions of high humidity and running surface water, although they are now known to have evolved separately and show a number of differences.
Split into simpler sentences: The name "water mold" refers to their earlier classification as fungi and their preference for conditions of high humidity and running surface water. Although they were once thought to be fungi, they are now known to have evolved separately and show a number of differences.