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There should be a comma at the end of the BACKEND line:

CACHES = {
    'default': {
        'BACKEND' : 'django.core.cache.backends.locmem.LocMemCache',
        'LOCATION' : '127.0.0.1:11211'
    }
}

This is because the settings file is a Python file and must have correct Python syntax. In a dictionary, Python expects each attribute (here, 'BACKEND' and 'LOCATION') to be separated by comma.