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Hydatid disease is a neglected zoonotic parasitic disease caused by cysts of the tapeworm Echinococcus granulosus. Canids, especially domestic dogs, are definitive hosts of the parasite and are the most pragmatic targets for control programs. A governmental dog deworming campaign was established in 1979 to control hydatidosis in southern Chile, which succeeded in reducing the prevalence of canine echinococcosis in Tierra del Fuego province from 68.4% (in 1978) to 1.2% (in 2002). In 2004, however, the program was dismantled to reduce costs, and since then, no follow‐up echinococcosis monitoring has been conducted. We surveyed 356 domestic dogs and interviewed owners or workers at 45 ranches in Chilean Tierra del Fuego during the summer of 2015–2016. Faecal flotation was employed to detect Taeniidae eggs, and PCR was used to test faecal samples for Echinococcus granulosus. Taeniidae eggs and Echinococcus sp. DNA were detected in the faeces of 45.4% (147/324) and 6.9% (23/331) of dogs, respectively. Infrequent dog deworming and the presence of culpeo foxes (Lycalopex culpaeus) were significant predictors of the prevalence of Echinococcus sp. DNA and Taeniidae eggs. Furthermore, the presence of introduced chilla foxes (Lycalopex griseus), the municipality, and several operational characteristics of ranches (number of sheep, frequency of sheep slaughter, number of dogs, frequency of removal of dog faeces, feeding of dogs with sheep viscera) were also predictive of the prevalence of Taeniidae eggs. Our findings reveal an ongoing risk of echinococcosis with pathogen maintenance in ranch dogs in Chilean Tierra del Fuego, and in the absence of adequate control programmes, there is a tangible risk of re‐emergence of hydatid disease as a public health concern. [ABSTRACT FROM AUTHOR]