Make sure that /etc/nsswitch.conf file contains the following line:

hosts:      files dns

"files" should be specified before "dns" and that will result in the hosts file having higher priority compared to DNS lookups.

Below is an example /etc/nsswitch.conf file, not that lines starting with '#' are comments

# /etc/nsswitch.conf
#
# An example Name Service Switch config file. This file should be
# sorted with the most-used services at the beginning.
#
# The entry '[NOTFOUND=return]' means that the search for an
# entry should stop if the search in the previous entry turned
# up nothing. Note that if the search failed due to some other reason
# (like no NIS server responding) then the search continues with the
# next entry.
#
# Legal entries are:
#
#       nisplus or nis+         Use NIS+ (NIS version 3)
#       nis or yp               Use NIS (NIS version 2), also called YP
#       dns                     Use DNS (Domain Name Service)
#       files                   Use the local files
#       db                      Use the local database (.db) files
#       compat                  Use NIS on compat mode
#       hesiod                  Use Hesiod for user lookups
#       [NOTFOUND=return]       Stop searching if not found so far
#

# To use db, put the "db" in front of "files" for entries you want to be
# looked up first in the databases
#
# Example:
#passwd:    db files nisplus nis
#shadow:    db files nisplus nis
#group:     db files nisplus nis

passwd:     files
shadow:     files
group:      files

#hosts:     db files nisplus nis dns
hosts:      files dns

# Example - obey only what nisplus tells us...
#services:   nisplus [NOTFOUND=return] files
#networks:   nisplus [NOTFOUND=return] files
#protocols:  nisplus [NOTFOUND=return] files
#rpc:        nisplus [NOTFOUND=return] files
#ethers:     nisplus [NOTFOUND=return] files
#netmasks:   nisplus [NOTFOUND=return] files

bootparams: nisplus [NOTFOUND=return] files

ethers:     files
netmasks:   files
networks:   files
protocols:  files
rpc:        files
services:   files

netgroup:   nisplus

publickey:  nisplus

automount:  files nisplus
aliases:    files nisplus

sudoers:  files ldap