In the Hausdorff Voronoi diagram of a family of clusters of points in the plane, the distance between a point t and a cluster P is measured as the maximum distance between t and any point in P, and the diagram is defined in a nearest-neighbor sense for the input clusters. In this paper we consider non-crossing clusters in the plane, for which the combinatorial complexity of the Hausdorff Voronoi diagram is linear in the total number of points, n, on the convex hulls of all clusters. We present a randomized incremental construction, based on point location, that computes this diagram in expected time and expected O(n) space. Our techniques efficiently handle non-standard characteristics of generalized Voronoi diagrams, such as sites of non-constant complexity, sites that are not enclosed in their Voronoi regions, and empty Voronoi regions. The diagram finds direct applications in VLSI computer-aided design.