How set up a local domain such as local.test? I'm web-developer and I need local domains. Before 10.7.2 update, I'm just fix /etc/hosts as I need, but new update crash this solution. How fix this new "feature"?
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.