Because of the current drought in Oklahoma, the Grand River Dam Authority will not drop the water level as much as usual.
The federal commission that regulates the lakes gave its stamp of approval to the utility on Wednesday.
The FERC decision means GRDA will not conduct the annual mid-August, 3-foot drawdown of the lake.
GRDA said it was a tough decision because dropping the water to expose the mudflats for a seeding project would put at risk communities who rely on the lake for their water.
It also said releasing too much water would mean risking the ability to produce enough electricity to meet demand.
GRDA says it plans to balance the interests of both Hudson and Grand Lakes.