How set up a local domain such as local.test?
Solution 1:
This answer on the question Lion “hosts” File Bug is relevant here as well.
All additional entries to the HOSTS file must be above the:
fe80::1%lo0
Make sure there is at least one line break after the last entry. Like so:
127.0.0.1 LLL.localhost
127.0.0.1 LLL.localhost
#
Although you probably can't tell, there is another line following the # symbol. One more thing to mention, using Space instead of Tab between 127.0.0.1 and localhost might help too.