Windows 8. Hosts file doesn’t work

I am using Windows 8 developer preview (x64) for testing purposes. I want to access some local network resource by DNS. So, I've added next line to my hosts file (%sindir%/system32/drivers/etc/hosts):

169.254.1.20       host.local

but when I'am trying to ping host.local I get the following error

Ping request could not find host unsecure.local. Please check the name and try a
gain.

Trying to open it from IE also displays a connection error (local proxy not needed and turned off).

but the output of

C:\Users\moonorg>ipconfig /displaydns

displayed my host:

Windows IP Configuration

61.2.254.169.in-addr.arpa
----------------------------------------
Name does not exist.


20.1.254.169.in-addr.arpa
----------------------------------------
Record Name . . . . . : 20.1.254.169.in-addr.arpa.
Record Type . . . . . : 12
Time To Live  . . . . : 86400
Data Length . . . . . : 8
Section . . . . . . . : Answer
PTR Record  . . . . . : host.local


189.0.254.169.in-addr.arpa
----------------------------------------
Name does not exist.


host.local
----------------------------------------
Record Name . . . . . : host.local
Record Type . . . . . : 1
Time To Live  . . . . : 86400
Data Length . . . . . : 4
Section . . . . . . . : Answer
A (Host) Record . . . : 169.254.1.20


host.local
----------------------------------------
No records of type AAAA

So, it's looks like DNS resolving problem. How do I make my hosts file work?

UPD:
Ping by IP works fine, so it's kind of name resolving problem.