No need to check localrc for password. Also use TOP_DIR as described by smoser.

stack.sh

@@ -43,8 +43,8 @@ if [ ! -d $FILES ]; then
     exit 1
 fi
 
-# Keep track of the current working directory.
-CWD=`pwd`
+# Keep track of the current devstack directory.
+TOP_DIR=$(cd $(dirname "$0") && pwd)
 
 # OpenStack is designed to be run as a regular user (Dashboard will fail to run
 # as root, since apache refused to startup serve content from root user).  If
@@ -155,18 +155,17 @@ function read_password {
     var=$1; msg=$2
     pw=${!var}
 
-    localrc=$CWD/localrc
+    localrc=$TOP_DIR/localrc
 
     # If the password is not defined yet, proceed to prompt user for a password.
     if [ ! $pw ]; then
         # If there is no localrc file, create one
-        if [ ! -e localrc ]; then
-            touch localrc
+        if [ ! -e $localrc ]; then
+            touch $localrc
         fi
 
         # Presumably if we got this far it can only be that our localrc is missing 
         # the required password.  Prompt user for a password and write to localrc.
-        if ! grep -q $1 localrc; then
         echo ''
         echo '################################################################################'
         echo $msg
@@ -181,8 +180,7 @@ function read_password {
             pw=`openssl rand -hex 10`
         fi
         eval "$var=$pw"
-            echo "$var=$pw" >> localrc
-        fi
+        echo "$var=$pw" >> $localrc
     fi
     set -o xtrace
 }