This paper describes an incremental parser and an unsupervised learning algorithm for inducing this parser from plain text. The parser uses a representation for syntactic structure similar to dependency links which is well-suited for incremental parsing. In contrast to previous unsupervised parsers, the parser does not use part-of-speech tags and both learning and parsing are local and fast, requiring no explicit clustering or global optimization. The parser is evaluated by converting its output into equivalent bracketing and improves on previously published results for unsupervised parsing from plain text.