Using the Django development server for local subdomain development

I'm trying to create a development environment that supports testing my subdomain configuration.  I'll be using the django-subdomains package, which relies on the sites framework.  To make a local environment that supports this while using the Django built-in webserver, do I need to set up local DNS?  Most of the solutions I see rely on Apache, and refer to the /etc/hosts file.  I've tried to use that, but nothing happens when I hit the name I think should map to 127.0.0.1:8000.

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