Hosts file in /rw/usrlocal/etc/hosts not the right way?

Hi, I was trying to block adverts without using an adblock software using steven blacks hosts master blacklist file. I put it in /rw/usrlocal/etc/hosts but for some reason it doesnt seem to be working, is that not where it should be?
I saw a similar post where unman suggested putting it in the /etc/hosts of the template but as I just want this in a few select appvms I was thinking that the /rw/usrlocal/etc/hosts in the appvms where i wanted it would suffice… apparently not?

Assuming you already removed everything before # Start StevenBlack from the Steven Blacks hosts file, you could then put this in the AppVM’s /rw/config/rc.local:

cat /path/to/steven/blacks/hosts >> /etc/hosts