We consider analytically the dynamics of an arbitrary number and configuration of vortices in an annular Bose-Einstein condensate obtaining expressions for the free energy and vortex precession rates to logarithmic accuracy. We also obtain lower bounds for the lifetime of a single vortex in the annulus. Our results enable a closed-form analytic treatment of vortex-vortex interactions in the annulus that is exact in the incompressible limit. The incompressible hydrodynamics that is developed here paves the way for more general analytical treatments of vortex dynamics in non-simply-connected geometries.