Hydrolyzes fatty acids from S-acylated cysteine residues in proteins (By similarity). Acts in sensory neurons including AWC to regulate starvation-induced thermotaxis plasticity and salt learning behavior. H2O + S-hexadecanoyl-L-cysteinyl-[protein] = H(+) + hexadecanoate + L-cysteinyl-[protein] In neurons, localizes to the sensory endings and to cytoplasmic punctate structures. Expressed in a subset of neurons including AIY, HSN, ADF, AFD, AWC, AWB and NSM, hypodermis, pharyngeal muscle and intestine. Expressed in larvae and adults. Palmitoylated on cysteine residues located in a cysteine cluster at the N-terminus which promotes membrane localization and localization to sensory neuron endings. Belongs to the AB hydrolase superfamily. ABHD17 family.