The first line under DESCRIPTION in the avahi.hosts(5) man page incorrectly gives the pathname of this configuration file as: /usr/local/usr/local/etc/avahi/hosts I believe that should be: /usr/local/etc/avahi/hosts
You have to tell us which avahi port you have installed.
Apologies. avahi-app-0.7_2
Thanks for the report. The paths need to be fixed, that's true.