/usr/share/ltsp/plugins/ltsp-build-client/common/010-etc-hosts is in ltsp-server 5.4.2-6+deb7u1.
This file is owned by root:root, with mode 0o644.
The actual contents of the file can be viewed below.
1 2 3 4 5 6 7 8 9 | case "$MODE" in
after-install)
cat <<EOF > $ROOT/etc/hosts
#This is a ltsp chroot and this file will be rewritten in boot process
#of terminal.
127.0.0.1 localhost
EOF
;;
esac
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