Cystic echinococcosis (CE) is endemic among the human population of Xiji County, Ningxia Hui Autonomous Region, China, where the prevalence is estimated to be between 2.2% and 3.6%. Government-run sheep abattoirs in Xiji County have closed in recent years and, as a consequence, slaughter is carried out mostly at rural market places. The market place in Xinglong Township, Xiji County, is home to an increasing number of stray dogs and the lack of government control over slaughter practices potentially favours Echinococcus granulosus transmission. A survey of sheep, goats and cattle reared in Xiji County was conducted in Xinglong Market and Xinglong Township to determine prevalence and transmission dynamics of E. granulosus infection. The liver and lungs of all livestock aged one year and older were examined macroscopically post mortem; visual examination and palpation of organs determined overall prevalence of E. granulosus. Cysts consistent in appearance with E. granulosus were observed in 2/184 sheep (prevalence 1.0%) and 1/55 of the cattle examined (prevalence 1.8%); 0/13 goats were found to be infected. However, microscopic examination of these suspected cysts failed to confirm these samples as E. granulosus, giving a prevalence of confirmed infection of zero percent in all three species. The prevalence of liver fluke was 61.3% in sheep and 12.7% in cattle with a significant difference between males and females (p = 0.001). Considering the high prevalence of echinococcosis in the local human population, the absence of CE observed among commercially slaughtered livestock was surprising. Several explanations for this discrepancy and their implications are proposed.