Add the following lines to =LOCAL_DIR/condor_config.local=.
 
 {file: LOCAL_DIR/condor_config.local}
-SEC_PASSWORD_FILE = LOCAL_DIR/condor_pool_password
+SEC_PASSWORD_FILE = $(LOCAL_DIR)/condor_pool_password
 SEC_DAEMON_INTEGRITY = REQUIRED
 SEC_DAEMON_AUTHENTICATION = REQUIRED
 SEC_DAEMON_AUTHENTICATION_METHODS = PASSWORD