Considered as commutative algebras, cluster algebras can be very unpleasant objects. However, the first author introduced a condition known as "local acyclicity" which implies that cluster algebras behave reasonably. One of the earliest and most fundamental examples of a cluster algebra is the homogenous coordinate ring of the Grassmannian. We show that the Grassmannian is locally acyclic. Morally, we are in fact showing the stronger result that all positroid varieties are locally acyclic. However, it has not been shown that all positroid varieties have cluster structure, so what we actually prove is that certain cluster varieties associated to Postnikov's alternating strand diagrams are locally acylic. Moreover, we actually establish a slightly stronger property than local acyclicity, which we term the Louise property, that is designed to facilitate proofs involving the Mayer-Vietores sequence.